Sydney vacancy rates end 2010 on a high, but supply still poor

Sydney’s rental market continues to struggle as supply fails to meet demand, despite an increase in vacancy rates at the end of 2010. 

Figures released by the Real Estate Institute of New South Wales (REINSW) this month show vacancy rates in Sydney only rose slightly in December, while the state’s other major cities, Newcastle and Wollongong, experienced a fall.

REINSW president Wayne Stewart is calling on both the government and opposition to encourage private investment in the rental market and address the current housing crisis.

“Unless we see the introduction of major policy initiatives aimed at encouraging greater investment in the private rental market, then 2011 will unfortunately show no improvement in the serious shortage of rental accommodation that has become a hallmark of the last decade,” Mr. Stewart said.

Sydney’s vacancy rate increased by 0.1% to 1.4% in December, with the inner suburbs (0-10km from CBD) the only area to record a decrease – down 0.1% to 1.1%.

The middle suburbs (10-25km from CBD) rose 0.3% to 1.7%, and the outer suburbs (more than 25km from CBD) also rose – up 0.1% to 1.4%.