REINSW report shows Sydney residential rental vacancies are stable

Sydney’s residential vacancy rates continue to remain steady at 1.7 per cent, according to data released by the Real Estate Institute of New South Wales.

REINSW President John Cunningham said the May 2016 REINSW Vacancy Rate Survey saw slight movements across all Sydney areas but Sydney as a whole remained the same.

“Inner Sydney was up 0.2 per cent to 1.5 per cent, Middle Sydney rose 0.1 per cent to 1.7 per cent, while Outer Sydney fell 0.1 per cent at 1.8 per cent,” Mr Cunningham said.

“Residential vacancy rates have continued the trend of the last 4 months and we expect this rate of supply to continue. We have heard much debate over the possible abolition of negative gearing in recent times, something that we do not support. If this was to occur we would expect to see a decline in construction and a fall in vacancy rates.

“This in turn would result in landlords trying to increase rents and a fall in prices for new-builds coming into the market as investors are not happy to make a loss on their investments. We believe that existing owners won’t dump their investments but will make sacrifices elsewhere in their household budgets,” Mr Cunningham said.

In the Hunter, vacancy rates fell 0.1 per cent at 2.4 per cent despite a gain of 0.3 per cent to 2.1 per cent in Newcastle.

In the Illawarra, vacancy rates fell 0.3 per cent at 1.4 per cent, led by Wollongong which was down 0.5 per cent at 1.2 per cent.

Across regional areas, New England rose 0.4 per cent to 4.0 per cent, Orana rose 0.2 per cent to 3.7 per cent and Coffs Harbour was up 0.7 per cent at 2.3 per cent. Albury fell 0.1 per cent at 2.8 per cent, Central Coast dropped 0.7 per cent at 2.3 per cent and South Coast fell 0.7 per cent at 1.8 per cent.

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