After months of uncertainty and an exodus from rental accommodation in some of the state's most populous areas, the REINSW Vacancy Rate Survey results for November 2020 show that confidence is returning to the market.
Vacancies in Sydney overall dropped last month and now sit at 3.4% - down 0.9% from October.
"This is the lowest we've seen vacancies since the first quarter of 2020," REINSW CEO Tim McKibbin said. "Vacancies in Sydney's Inner Ring fell back to 4.6%, a decrease of 1.2% for the month. Both the Middle and Outer Rings of Sydney followed suit, dropping to 4.4%
(-0.5%) and 1.8% (-0.8%) respectively.
"It's been a long year and one that's been full of challenges for everyone. When COVID-19 hit, many tenants were faced with the prospect of losing their jobs and had to make some hard financial decisions.
"It was not surprising to see inner-city properties with higher weekly rents being relinquished by tenants, either for more affordable options in suburbs more distant from the CBD or to move in with family members. Then there were those who fled the city altogether and moved to regional areas, We saw tenants seizing the opportunity to secure a rental property that suited both their budget and they desired lifestyle."
Mr McKibbin said that as we approach the festive season, it's clear that things have started to settle.
"Many people are returning to work, while others are settling into a new hybrid pattern of working, with some days at the office and others at home," he said. "Overall, there's a renewed confidence in what the future holds and this has had a flow-on effect to the residential rental market."
Vacancy rates in the majority of regional areas followed the Sydney trend, veering downward over the last month.
"Vacancy rates have tightened across most regional areas over the last month," Mr McKibbin said. "The key message from this month's results is that there is light at the end of the tunnel for both landlords and tenants."
Residential vacancy rate percentage
The REINSW Residential Vacancy Rate Report is based on the proportion of unlet residential dwellings to the total rent roll of REINSW member agents on the 15th of each month. Carried out monthly, the research - a survey of REINSW member agents conducted by Survey Matters - collects the total properties on agency rent rolls, the number of properties that were vacant on the 15th of the month, and the postcode in which a majority of agents' rental properties are located. The suburb-level rates reported by agents are weighted based on ABS Census 2016 Dwelling Characteristics. The November 2020 report is based on survey responses covering 110,946 residential rental properties.
Nov-20 |
Oct-20 |
Sep-20 |
Aug-20 |
Jul-20 |
Jun-20 |
May-20 |
Apr-20 |
Mar-20 |
Feb-20 |
Jan-20 |
Dec-19 |
|
SYDNEY |
||||||||||||
Inner |
4.6% |
5.8% |
5.5% |
4.7% |
5.3% |
5.8% |
5.0% |
4.3% |
2.5% |
2.8% |
3.1% |
3.4% |
Middle |
4.4% |
4.9% |
5.5% |
4.6% |
5.4% |
5.2% |
4.6% |
4.4% |
3.6% |
3.9% |
3.6% |
3.4% |
Outer |
1.8% |
2.6% |
2.1% |
2.4% |
4.3% |
2.6% |
2.7% |
3.1% |
3.0% |
3.5% |
3.3% |
3.4% |
Total |
3.4% |
4.3% |
4.1% |
3.7% |
5.0% |
4.5% |
4.1% |
3.8% |
3.0% |
3.4% |
3.3% |
3.4% |
HUNTER |
||||||||||||
Newcastle |
2.6% |
1.7% |
1.5% |
1.2% |
1.3% |
1.7% |
2.4% |
2.1% |
1.6% |
2.5% |
2.0% |
2.5% |
Other |
1.1% |
1.3% |
0.9% |
0.8% |
1.3% |
1.9% |
2.4% |
1.8% |
1.2% |
2.0% |
0.9% |
1.7% |
Total |
1.6% |
1.4% |
1.1% |
0.9% |
1.3% |
1.8% |
2.4% |
1.9% |
1.3% |
2.1% |
1.2% |
1.9% |
ILLAWARRA |
||||||||||||
Wollongong |
1.8% |
1.5% |
2.1% |
2.6% |
2.9% |
3.2% |
3.9% |
3.2% |
3.5% |
2.0% |
2.9% |
2.6% |
Other |
0.9% |
2.2% |
0.7% |
1.1% |
2.6% |
2.9% |
2.9% |
4.3% |
4.3% |
2.3% |
2.3% |
2.9% |
Total |
1.3% |
1.8% |
1.4% |
2.0% |
2.8% |
3.1% |
3.6% |
3.6% |
3.8% |
2.1% |
2.7% |
2.7% |
REGIONS |
||||||||||||
Albury |
0.3% |
0.9% |
0.8% |
0.4% |
1.1% |
0.6% |
1.2% |
1.2% |
0.6% |
1.6% |
1.8% |
1.1% |
Central Coast |
0.8% |
0.8% |
0.7% |
2.0% |
1.5% |
2.1% |
2.3% |
3.0% |
2.4% |
3.0% |
4.3% |
5.1% |
Central West |
0.3% |
0.3% |
0.4% |
0.6% |
1.1% |
1.5% |
2.0% |
2.0% |
1.0% |
1.4% |
2.1% |
2.2% |
Coffs Harbour |
0.5% |
0.7% |
0.9% |
0.8% |
2.1% |
2.4% |
3.0% |
3.4% |
3.1% |
5.4% |
3.3% |
2.5% |
Mid-North Coast |
0.5% |
0.5% |
0.8% |
1.1% |
1.2% |
2.0% |
3.2% |
2.6% |
1.7% |
2.5% |
2.4% |
2.2% |
Murrumbidgee |
1.8% |
1.0% |
0.6% |
0.7% |
0.9% |
0.8% |
2.0% |
1.1% |
1.4% |
1.5% |
1.9% |
1.8% |
New England |
2.3% |
2.3% |
1.3% |
1.6% |
2.8% |
3.1% |
3.9% |
3.4% |
3.0% |
3.8% |
4.1% |
3.3% |
Northern Rivers |
0.6% |
1.7% |
0.9% |
1.5% |
1.1% |
2.6% |
1.8% |
2.7% |
1.7% |
1.7% |
2.2% |
1.5% |
Orana |
1.0% |
0.7% |
0.6% |
1.5% |
1.0% |
1.9% |
2.4% |
2.7% |
0.7% |
1.2% |
2.4% |
1.8% |
Riverina |
0.6% |
0.6% |
0.8% |
0.9% |
0.6% |
1.2% |
2.5% |
1.8% |
1.5% |
1.9% |
1.7% |
1.2% |
South Coast |
0.4% |
0.3% |
0.7% |
0.9% |
1.4% |
2.7% |
2.0% |
1.7% |
4.8% |
3.9% |
2.7% |
3.4% |
South Eastern |
0.4% |
0.9% |
0.8% |
0.8% |
- |
0.8% |
1.8% |
0.7% |
3.5% |
2.5% |
1.8% |
1.2% |
