Sydney Vacancy Rates Remain Steady

Vacancy rates in Sydney have remained steady at 1.7 per cent for the second month in a row, according to new figures from the Real Estate Institute of New South Wales (REINSW).

The latest figures highlight that changes need to be made to the housing supply in the harbour city - particularly in the inner suburbs where the vacancy rate has dropped to 1.6 per cent.

Christian Payne, president of the REINSW, asserted that one key way to drive change in the market is for the state government to do more to attract private property investors.

Improvements to housing supply was one of the main areas of focus in the NSW state budget, but it remains to be seen whether these measures will be enough to address the state's shortage of rental properties, explained Payne.

"All eyes will now be on the O'Farrell government's $5,000 investor grant initiative and whether that will be enough to attract investors into the market and create additional accommodation for tenants," he said.

Prospects for tenants look slightly rosier outside of Sydney - particularly on the Central Coast where rental vacancy rates increased to their highest level in a year at 2.6 per cent. Tenants may also have more choice in Wollongong, which recorded a 2.8 per cent vacancy rate, and Coffs Harbour, where the rate currently stands at 4.7 per cent.