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Vacancy rates in Sydney take a tumble
For Australians looking to buy investment property in Sydney, news coming from the Real Estate Institute of New South Wales (REINSW) seems to indicate that purchasing property to rent to tenants may be the way to go.
According to the REINSW, vacancy rates across the Sydney metropolitan area are at their lowest levels since March 2012. The November 2013 REINSW Vacancy Rate Survey reports that the availability of rental accommodations fell 0.1 per cent in the Sydney area, reaching 1.6 per cent.
"The latter part of 2013 has seen Sydney rates steadily declining, which is not good news for tenants looking to secure a property heading into the holiday period," Malcolm Gunning, president of the REINSW, said in a December 16 media release.
"It is difficult for people to find housing and this is of grave concern. The rising population and lack of new housing developments is fueling this shortage."
This activity was felt sharply in the surrounding suburbs.
REINSW reported that while the inner suburbs echoed the Sydney metro area as a whole, the outer suburbs saw an even bigger decline, falling 0.4 per cent to reach 1.3 per cent.
Surrounding regions also saw decreases, with Illawarra and Wollongong both posting declines in vacancy rates, reaching 1.8 per cent and 2.2 per cent in November, respectively.
According to the REINSW, the South Coast and Central Coast were the hardest places to find rental accommodation among regional areas.
While this may be less than ideal news for renters, it could spell big things for property investors in the Sydney area. Low vacancy rates typically mean high demand and the chance for more rental income, both great news for property owners.
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