Rental Crisis a Bigger Problem Than Interest Rates
The latest figures show a vacancy rate of just 1.6% in January right across the Sydney metropolitan area, which is a slight improvement from the 1.5% in December. However the amount of available accommodation in regional areas continues to fall.
On the Central Coast, the vacancy rate fell to 2.2% from 3.9%, Albury was down to 1.8% from 2.3%, the Orana region (including Dubbo) came in at 1.7%, down from 2.2%, and Northern Rivers dipped to 2.1% from 2.7%.
This problem is by no means limited to the Sydney area, regional areas are feeling the pinch as well and this is already leading to rent rises.
To remedy the issue the REINSW is lobbying for the abolition of land tax on residential properties – which are mainly investment properties – to provide a confidence boost to investors. Major political parties are being pushed to adopt this policy by the REINSW on the lead up to state elections.
Residential vacancy rates in NSW
| |
Jan
2007 |
Dec
2006 |
Nov
2006 |
Oct
2006 |
SYDNEY |
1.6% |
1.5% |
1.6% |
1.5% |
Inner (0-10km from CBD) |
1.6 |
1.4 |
1.3 |
1.3 |
Middle (10-25km) |
1.6 |
1.6 |
1.9 |
1.5 |
Outer (>25km) |
1.6 |
1.6 |
1.6 |
1.7 |
HUNTER |
2.2 |
2.2 |
2.4 |
1.9 |
Newcastle |
2.7 |
2.4 |
2.2 |
1.9 |
Other |
1.6 |
1.9 |
2.2 |
1.9 |
ILLAWARRA |
3.1 |
3.5 |
3.7 |
3.6 |
Wollongong |
2.9 |
3.7 |
3.6 |
3.8 |
Other |
3.4 |
3.0 |
4.0 |
3.2 |
Central Coast |
2.2 |
3.9 |
2.9 |
3.0 |
Albury |
1.8 |
2.3 |
1.8 |
1.6 |
Central West |
3.7 |
3.5 |
4.8 |
3.6 |
Coffs Harbour |
3.3 |
3.7 |
3.2 |
2.9 |
Mid-North Coast |
3.3 |
3.6 |
4.4 |
4.3 |
New England |
3.0 |
3.9 |
3.4 |
3.1 |
Northern Rivers |
2.1 |
2.7 |
2.1 |
1.3 |
Orana |
1.7 |
2.2 |
1.8 |
1.9 |
Riverina |
4.4 |
4.7 |
4.3 |
2.9 |
South Coast |
3.4 |
3.3 |
4.3 |
3.3 |
South Eastern |
1.6 |
1.1 |
1.2 |
1.2 |
Please contact Benjamin Mulae, Director - Property Services by sending an email to info@alexanders.net.au, should you have any queries.
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