Sydney rental market showing signs of recovery

By Duffie Osental | 21 Jun 2021

Sydney’s vacancy rate has indicated positivity for areas hit hardest by the COVID-19 pandemic, according to the Real Estate Institute of New South Wales (REINSW).

According to REINSW data, vacancy rates in Sydney’s Inner Ring suburbs fell month-over-month in May to 3.3%. They also dropped in both the Middle (4.6%) and Outer (2.5%) Ring suburbs, falling 1.2% and 0.7% respectively.

Overall, vacancies across Sydney fell in May and now sit at 3.3% – down 1.0% from April 2021.

Tim McKibbin, chief executive officer of REINSW, said the figures suggest more confidence in the economy and jobs market.

“While it is still very early days, this is a positive sign particularly for the Inner Ring which has endured a lacklustre performance during the past 12-months with no international students and tourism to boost vacancy rates,” said McKibbin. “There could be a few reasons behind it such as attractive rents, more people are slowly returning to the CBD to work or the influx of expats renting properties while looking to buy. It is good news for those with investment properties and an improvement from the peak 5.8% vacancy rate recorded back in June and October last year.”

Outside Sydney, REINSW data found that both the Newcastle and Wollongong rental markets remained steady during May. Overall vacancy rates in the Illawarra region fell slightly to 0.9% – the lowest level the region has ever recorded since April 2016.

Top Suburbs : westmead , westbrook , berala , spearwood , scarborough


Get help with your investment property

Do you need help finding the right loan for your investment?

When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local mortgage broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus an appointment is free.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here