Rental vacancy rates on the rise, but Port Macquarie steady

A new Residential Vacancy Rate Report indicates rental vacancies are increasing in key NSW areas across Sydney, Illawarra, Hunter and the Mid-North Coast, according to Real Estate Institute of NSW data.

Mild increases were seen in the Central Coast up to 2.3 per cent, Mid-North Coast up from 1.8 per cent to 2.1 and Riverina which saw an increase by 0.9 per cent to 3.1 per cent in January.

Percival Property Port Macquarie's Michael Percival said the banking royal commission has had a major impact on property but the area's natural growth would continue to take up any vacancy.

"At the moment the best word to describe rental vacancy rates is equilibrium, there's good supply, good enquiry and markets are stable," he said.

"There's a good level of status quo heading to cooler winter months with less looking to rent, moving schools and housing in summer.

"Traditionally it will be slow in the middle of the year but Port Macquarie has growth anyway. I would expect the vacancy rate to tighten up in 12 months time."

Coffs Harbour, Central West and South Eastern regions saw the largest largest decreases, between 0.5 and 0.7 per cent.

Elders Real Estate Port Macquarie general manager and licensee Robyn Gleeson said last year's vacancy stats for Port Macquarie had been sporadic, but this year looked better.

"Coming back from a break the office hit the ground running and demand was quite strong," she said.

"On a local scale during this time of the year people are locking in schools, people are starting to relocate, families coming into the area during the beginning of the year.

"Port Macquarie is always a pretty healthy place but last year it (the vacancy rate) did come up a bit.

"There is no specific driving factor for the Port Macquarie area and the market normally dips in the winter season."

The report is based on the proportion of un-let residential dwellings to the total rent roll of REINSW member agents on the 15th of each month.

Data is based on survey responses covering 132,493 residential rental properties.

REINSW President Leanne Pilkington said vacancies in the Hunter region remained steady, Newcastle seeing an increase of 0.6 per cent from December, to 2.5 per cent this month.

“Agent feedback in Newcastle suggests that it is getting harder to find tenants, with a slower market and a surplus of properties up for lease,” she said.

Wollongong saw a significant jump in rental vacancies, from 2.7 per cent on 15 January to 2.9 per cent.

“Agents have let us know there are a lot of new developments in the area – mainly for student housing – boosting Wollongong’s vacancy rate,” said Ms Pilkington.

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