| 29.05,09. 03:06 AM |
Rise in Sydney rental vacancies
May 29, 2009 12:01am
RENTAL vacancies in Sydney are at their highest level in two years, the Real Estate Institute of NSW says.
Institute president Steve Martin says the percentage of available rental properties has jumped to 1.5 per cent for April, an increase of 0.3 per cent compared to the previous month's result.
"The results for Sydney are encouraging and I think we are now starting to see the effect of the low interest rate environment," he said.
"The first home buyers boost is resulting in many people buying their own home and consequently freeing up rental stock.
"These are tentative steps. However, they are clearly helping ease the tight rental market witnessed through most of 2008."
He said the results were the best since October 2007 but showed supply still did not meet demand.
"A vacancy rate of between 3 per cent and 4 per cent is where we need to get to," Mr Martin said.
Sydney suburbs more than 25km from the city recorded the highest vacancy increase, of half a per cent to 1.4 per cent.
Rental availability in inner and middle Sydney suburbs also increased by 0.2 per cent to 1.4 per cent and 1.7 per cent, respectively.
Newcastle went against the trend, recording a 0.5 per cent decrease in rental property vacancies to 1.7 per cent, while Wollongong rose 0.6 per cent to 2.2 per cent.