More rental property available in NSW?

Locating the ideal investment property may seem difficult at times, but the market has opened up recently. The June Vacancy Rate Survey from the Real Estate Institute of New South Wales (REINSW) showed a rise in the amount of real estate for rent.

During June, there was a 0.2 per cent rise in vacancies compared to the previous month. As a result, the vacancy rate reached 2.1 per cent, which is largely due to the number of apartments that have entered the market.

Many of these aren’t being snapped up as quickly as many landlords had expected, noted REINSW president Malcolm Gunning, which is good news for anyone moving to the Harbour City.

“There is a different story in Middle Sydney and in particular Outer Sydney, which have seen vacancy rates fall 0.3 per cent to 1.9 per cent and 0.2 per cent to 1.7 per cent respectively,” commented Mr Gunning.

Some of these areas have experienced a surge in demand, not least because there are so many jobs in the construction sector. This has helped plug some of the gaps that have been created by the closing down of mines throughout the state.

There is unlikely to be a let-up in demand for investment home loans any time soon, as REINSW also revealed that home prices are increasing across the state capital. In fact, the median house price now stands in excess of $1million, which has been spurred by price growth in the west and south of the city.

Property prices at the lower end of the scale have been rising, which in turn has led to an increase in median values. Although prices have started to even out close to the CBD, the same cannot be said for suburbs located further away.