Vacancy Rate Stiffens in Sydney
Phil McCarroll writes a piece for the website Your Investment Property wherein he talks about stiffened vacancy rates in the Sydney residential property market. In the month of July, the vacancy rate for Sydney dropped by 0.2% and was stationed at 1.9%. This implies that many more tenants are finding accommodation in Sydney. Put another way, many more of them are seeking rental properties to live in.
Low vacancy rate caused by population explosion
The vacancy rate has thus come down to levels that have been witnessed during the months of March and April. Level of supply is not low in Sydney at the moment. The tightening of the vacancy rate is the direct result of population explosion, one which has been caused mainly by inter-state migration.
Vacancy rate in inner Sydney
The inner-ring of Sydney has provided a paradox. While it has witnessed the maximum plunge in the vacancy rates (0.5%), the rates here still remain the highest (2.1%, which is 0.2% higher than the city average). The vacancy rate in the outer city has come down by 0.1% to 1.6% and this is the lowest they have come to in the year 2015.
You can read the original article here.
Low vacancy rate is a double-edged sword
It works like a double-edged sword. Landlords laugh all the way to the bank and tenants aren’t exactly too happy about the situation. The rental market has always been a little fragile and it sometimes moves counter-cyclically. At this time, when Sydney is busy hunting for capital growth, it must be ready to lose a point or two with regards to rental yield. The dropping vacancy rate is just the kind of “rental yield” bonus that Sydney might get for its continued good performance.