Property Rental Crisis in Sydney

There is a dearth of rental properties in Sydney and the situation looks likely to deteriorate with record numbers of Sydneysiders defaulting on their mortgages and trying to shift into rented accommodation.

July statistics from the NSW Real Estate Institute show rental vacancies in Sydney increased by just 0.1 percent in the month with a dire outlook.

Credit reporting agency Moody’s has found that of the 20 highest mortgage default areas in Australia 12 are in New South Wales. The number of mortgage defaults in the first three months of the year were at record highs.

REINSW President Steve Martin commented:

“The rental market is already under immense pressure and the added impact of people defaulting on mortgages and becoming renters will only inflame an already critical situation.”

Inner suburbs of Sydney fared worse than others with a 0.2 percent drop in rental vacancies to 1.2 percent. Middle Sydney rental vacancies rose 0.2 percent to 1.3 percent, while outer Sydney vacancies rose 0.1 percent to 1.0 percent.

Rental vacancies in Newcastle have fallen for a second month in a row down another 0.3 percent to 1.5 percent – this figure now being less than half of the available vacancies in May.

The Central Coast showed an improvement, with an increase of 1.4 percent to 3.2 percent. Wollongong also had a slight increase, up 1 percent to 2.3 percent.

“The NSW government’s staunch refusal to acknowledge this growing crisis is going to lead to thousands of people suffering housing stress. Unless matters such as land tax and stamp duty are addressed immediately the consequences could be dire.

“The downward trend of these figures is set to continue if the state government insists on sticking its head in the sand on the issue of rental vacancies,” said Mr Martin.