Full house

Sydney's rental vacancy rate is at its lowest level in 12 months, according to the latest data released today by the Real Estate Institute of New South Wales...

In May 2009, the percentage of available rental properties across Sydney slumped by half a percent to 1.0 per cent.

"This is the lowest result recorded since May last year and is extremely disappointing," said REINSW President Steve Martin.

In May 2009, the percentage of available properties in suburbs more than 25 kilometres from the CBD fell 0.4 per cent to 1.0 per cent.

In Sydney's ‘middle' suburbs, between 10 and 25 kilometres from the CBD, rental vacancies fell 0.2 per cent to 1.5 per cent.

The only parts of Sydney not to record a fall in available rental properties were suburbs within 10 kilometres of the CBD, which recorded a vacancy rate of 1.4 per cent- unchanged compared to the previous month.

"These results are a double-edged sword: great news for landlords but grim news for tenants," said Mr Martin.

In the Hunter, rental vacancies fell 0.2 per cent to 1.7 per cent, with vacancies in Newcastle also falling 0.2 per cent to 1.5 per cent.

In the Illawarra, overall vacancies dropped 0.3 per cent to 1.6 per cent, whilst in Wollongong, the percentage of available properties fell a full one per cent to 1.2 per cent.

"The results for Sydney and Wollongong are concerning and show that despite falls in interest rates and additional first home buyer incentives, the rental market remains extremely fragile," said Mr Martin.

Source: www.reinsw.com.au