Investment opportunities abound as Sydney vacancy rates drop

By the resi financial blog team, 16 December 2013

Vacacny rates drop in Sydney

The vacancy rates for Sydney have dropped to levels last seen in March 2012, which could be great news for anyone interested in taking out an investment loan and expanding their property portfolio in the New South Wales capital.

The Real Estate Institute of New South Wales (REINSW) have released the latest Vacancy Rates Survey for November, which found that the overall vacancy rate in Sydney dropped by 0.1 percentage points during November, and is currently resting at 1.6 per cent.

According to Malcolm Gunning, president of the REINSW, the later half of 2013 has seen the vacancy rate in the city slowly declining, making it hard for tenants to find accommodation during the holiday period.

There were varying degrees of decreasing rates across the city. The outer suburbs of Sydney, in places like Hawkesbury, Pittwater and Sutherland, fell by 0.4 per cent to the low level of 1.3 per cent.

Furthermore, the inner suburbs - including Ashfield, Botany Bay and Leichhardt - fell by 0.1 percentage point to 1.6 per cent. However, the middle suburbs underwent a slight increase during October, increasing 0.2 percentage points to 1.8 per cent.

"The rising population and lack of new housing developments is fueling this shortage," Mr Gunning said in a December 16 statement.

"It is difficult for people to find housing and this is of grave concern."

However, the regional areas of New South Wales experienced a mixed bag of vacancy rate changes. The strongest areas for tenants to secure property were in the Central West and South Eastern areas of the state, where rates rested at 4.1 per cent and 4 per cent, respectively.

With Sydney expecting a population boom in the near future, now could be the perfect time to secure investment property and establish yourself in one of Australia's most bustling metropolitan regions.

Categories: Home Loans, Property Investment