Falling vacancy rates in NSW mean a boon for investors
Residential vacancy rates have dropped across the board in New South Wales, according to the Real Estate Institute of New South Wales' (REINSW) April 2014 Vacancy Rate Survey. This indicates a high demand for rental housing in the state.
The rental market in Sydney, Wollongong, Albury and the Northern Rivers all saw falls in available properties since last month. All of this stands to make any residential real estate in these areas very hot property indeed for potential tenants desperately looking for a foot in the door.
While Sydney saw a rise in its inner, middle and outer suburbs, it was still tight at 1.6 per cent, and these were largely down across the board since the same time last year. Likewise, Wollongong vacancy rates tumbled 0.8 per cent to a three-year low of 1.5 per cent, and Albury and the Northern Rivers saw a fall of 0.5 per cent to 0.16 per cent and 1.5 per cent, respectively.
"They represent the two lowest vacancy rates in the state," REINSW President Malcolm Gunning said.
The Hunter region outside of Newcastle also saw a drop of 0.4 per cent, while the wider Illawarra region experienced a 0.5 per cent fall. With rental properties in such insatiable demand, now is a good time for investors to act.
NSW actually bucks the national trend, according to data by SQM research. Last year in May, SQM reported that the national vacancy rate in April had hit 2 per cent for the first time since September 2009, excluding seasonal months. The vacancy rate has hovered around this percentage up to the 16th of April this year.
Vacancy rates lift in several key areas
There is some good news for renters, too. The REINSW data shows some striking freeing up of vacant properties in a number of significant regions.
Though Sydney remains tight, its middle suburbs saw a 0.4 per cent increase to 2 per cent. Newcastle's rate also lifted by half a point to 3 per cent. Other areas which saw a rise include the Central West, Coffs Harbour, the Mid-North Coast, Orana and Riverna.
The Central West has the most rental potential, having risen by 1.4 per cent to the highest rate in the state, 4.9 per cent. Coffs Harbour wasn't far behind at 4 per cent. That makes these regions attractive to potential tenants who are finding it tough to find accommodation in other parts of New South Wales.
Whether you're a renter or an investor, getting in touch with the specialists at LJ Hooker would be advantageous in light of these facts.