The Real Estate Institute of NSW has released its Vacancy Rate Survey results for October, which show vacancies across Sydney continue to rise, with the inner-ring hitting an all-time high.
Vacancies in Sydney overall sit at 4.3 per cent, rising 0.2 per cent, and trending towards the all-time high of 5 per cent, which was reached in July.
The inner-ring of Sydney has already reached the previous heights of July, again hitting 5.8 per cent in October.
“After a 0.6 per cent drop in August, vacancies have again been on a steady rise in the inner city, indicating that the COVID-19 fallout is far from over for landlords,” REINSW CEO Tim McKibbin said.
“Sydney’s outer ring also experienced an uptick in vacancies, moving 0.5 per cent to be 2.6 per cent in October. However, the middle ring bucked the trend, dropping 0.6 per cent to 4.9 per cent.”
The high vacancy rate, coupled with the regional shift brought on by the pandemic, has led to tight rates in regional New South Wales, with Newcastle sitting at 1.4 per cent – a rise of 0.3 per cent, but still representative of a tight regional market.
“Vacancies across much of regional New South Wales remain extremely tight,” Mr McKibbin said.
“Vacancies in some areas eased, while other areas tightened – however the results show that stock remains tight across all non-metropolitan areas.
“From the earliest stages of the onset of the COVID-19 pandemic, we saw tenants relinquishing their properties in favour of more affordable options in suburbs more distant from the popular metro hubs and, in fact, even further afield into regional areas.
“This trend shows no sign of abating.
“What’s clear is that COVID-19 continues to have a significant impact on the residential rental market across New South Wales and this is something that’s unlikely to change in the coming months,” Mr McKibbin said.