The latest Vacancy Rate Survey by REINSW for January 2025 has revealed fluctuating vacancy rates in NSW, indicating the ongoing need for more rental properties. Despite a slight easing in December, Sydney’s overall vacancy rate fell by 0.2 per cent, from 2.2 per cent in December 2024 to 2 per cent in January 2025, primarily due to a drop in the inner Sydney rings.
The inner Sydney rings, which include suburbs in the Ashfield, Botany Bay, Lane Cove, Leichhardt, Marrickville, Mosman, North Sydney, Randwick, Sydney, Waverley, and Woollahra LGAs, experienced the highest decline in vacancy rates, with a 0.8 per cent decrease compared to the previous month. The current vacancy rate in the inner Sydney area is now 2.2 per cent.
On the other hand, Sydney’s middle suburbs, which encompass Auburn, Bankstown, Burwood, Canterbury, Canada Bay, Hunters Hill, Hurstville, Kogarah, Ku-ring-gai, Manly, Parramatta, Rockdale, Ryde, Strathfield, and Willoughby, saw a slight increase in vacancy rates by 0.3 per cent. The vacancy rate in these suburbs now stands at 2.1 per cent, up from 1.8 per cent in December 2024.
Similarly, Sydney’s outer region experienced a slight increase in vacancy rates in January, with a vacancy rate of 1.9 per cent, representing a small 0.2 per cent increase compared to the previous month. The outer suburbs include Baulkham Hills, Blacktown, Blue Mountains, Camden, Campbelltown, Fairfield, Gosford, Hawkesbury, Holroyd, Hornsby, Liverpool, Penrith, Pittwater, Sutherland, Warringah, Wollondilly, and Wyong.
According to REINSW CEO Tim McKibbin, while vacancy rates fluctuated across the state in January, there is still a need for more rental properties. He stated, “Vacancy rates continue to hover at historically low levels, and the number of properties available to rent keeps diminishing.”
The REINSW vacancy survey also revealed a slight rise in rental vacancies in the Hunter region, while the Illawarra region experienced a decline. In the Hunter region, the vacancy rate increased by 0.2 per cent to reach 1.5 per cent, while vacancies in the Illawarra region dropped by 0.1 per cent to 1.1 per cent.
Similar to Sydney, regional NSW witnessed fluctuations in vacancy rates in January. Some areas, such as Albury, Central Coast, Coffs Harbour, Mid North Coast, Murrumbidgee, New England, Northern Rivers, and South Coast, saw an increase in vacancy rates compared to the previous month. Conversely, the Central West, Orana, Riverina, and South East areas experienced a drop in vacancy rates.
McKibbin highlighted that despite some suburbs experiencing a slight ease in vacancy rates, the low supply of residential properties makes the market challenging for renters. The high demand for rentals, limited stock availability, and high weekly rent are impacting tenants and their ability to manage the high cost of living. McKibbin concluded, “In some areas, agents have a long list of pre-qualified tenants, but there’s simply not enough stock available to meet demand.”
