PHOTO: Sydney
COVID-19 is continuing to wreak havoc on vacancy rates in Sydney, with vacancies up for the fourth consecutive month.
The Real Estate Institute of NSW has crunched the numbers on vacancy rate survey results to reveal vacancies are now sitting at 4.5 per cent.
This is 0.4 of a percentage point higher than vacancy rates in May, and 1.5 per cent higher than what was posted in March.
According to CEO Tim McKibbin, “Sydney’s inner ring experienced the most significant change, rising by 0.8 [of a percentage point] to 5.8 per cent”.
“Last month, vacancies in the inner ring hit an 18-year high at 5.1 per cent — a result that has been exceeded this month. Looking back at more than 20 years of survey results, we’ve not seen vacancy rates this high. It really is staggering,” he commented.
“For Sydney’s inner ring, if this trend continues, as it’s likely to for the foreseeable future, we can expect to see downward pressure on rents.
“While this is great news for tenants, it’s a recipe for disaster for many landlords.”
The middle ring has also seen vacancy rates swing upwards — 0.6 of a percentage point to 4.6 per cent.
Sydney’s outer ring is the only area bucking the trend, with vacancy rates tightening by 0.1 of a percentage point to 2.6 per cent.
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