A fall in residential vacancy rates over the last few months is another sign that the Sydney real estate market was stabilising, creating healthier investment conditions, according to the REINSW.
According to REI figures released today, the vacancy rate for residential property in Sydney for October fell to 3.4% from the high of 4.5% recorded in December 2002.
It was the third consecutive month that vacancy rates declined and are now the lowest rate since May 2001. In comparison, at the same time last year the vacancy rate was 4.5%.
“The vacancy rate was one of many indications that the residential property market in Sydney was cooling, which was good news for both investors and tenants,“ says REINSW president Rowen Kelly.
“In recent times low interest rates and a volatile stock market had contributed to more short-term investors putting their money into the property market.
“However, the recent increase in interest rates may have made property investment less attractive for speculative property investors,” he says.
Inner city rates experienced the most dramatic change in vacancy rates during October, dropping to 2.9% from a vacancy rate of 3.7% during the previous month and 4.5% a year ago.
The vacancy rate for middle Sydney fell slightly to 3.5% in October from 3.6% in September. The current rate is significantly lower than the 5.3% rate recorded a year ago.
Outer Sydney vacancy rates declined marginally to 3.9% from 4.0%, in September and is also lower than the 4.4% rate experienced a year ago.
