Consyl Publishing & Publicity Ltd

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Home > Our Publications > Australian Outlook> 2006 > December

Rental property scarce in NSW

BIS Shrapnel's claim that residential rents in Sydney will rise by 40 per cent over the next four years, coupled with the Real Estate Institute of New South Wale's (REINSW) own Vacancy Rate Survey showing that rental properties in the city are scarcer than at any time in the past six years, should be ringing alarm bells in REINSW President Cristine Castle said.
Mrs Castle said the lack of investment incentives for residential housing by the New South Wales Government is creating a housing crisis.
"With extraordinarily low vacancy rates in Sydney and strong growth regional centres like Albury and Dubbo, where vacancy rates are as low as two per cent and 1.3 per cent (respectively), affordable accommodation will become a thing of the past unless the Government acts now to encourage investment in residential investment property," Mrs Castle said.
The REINSW's latest Vacancy Rate Survey shows that the availability of inner Sydney residential property is an exceptionally low 1.6 per cent, while the rate for the middle Sydney is 1.5 per cent and the availability of rental properties in the outer suburbs is only 2 per cent.
"Overall the vacancy rate in Sydney is 1.7 per cent, which is the lowest in six years and it is still trending downwards," Mrs Castle said.
Mrs Castle said the New South Wales Government had to urgently reduce Land Tax on residential properties that provide low cost housing and do more to assist families by increasing the First Home Buyers Grant and providing more Stamp Duty relief to over 65s.
"Recycling the housing stock by helping older Australian's buy smaller, newer and safer homes does not only give them greater quality of life, it also makes larger homes available for younger families and makes better use of urban infrastructure like schools and facilities that families desperately need."