Rents are likely to increase in Sydney this year due to the current low vacancy rate which is only likely to tighten even further.
According to the Real Estate Institute of NSW (REINSW), the rental vacancy rate in Sydney rose 0.1 percentage points to 1.5 per cent in January, but they expect the rental market will tighten in the coming months.
“Unfortunately, without substantive reform to property investment controls in NSW, the state will continue to suffer from an accommodation availability crisis for the foreseeable future,” said REINSW president Wayne Stewart.
“In addition, the new amendments to the Residential Tenancy Act passed by the Keneally Government will only result in a further decline in available properties coupled with skyrocketing rents.
“The changes will ultimately drive some investors from the state and leave tenants with even fewer accommodation options.”
Mr Stewart said he wanted to see Premier Kristina Keneally and Opposition Leader Barry O’Farrell outline their plans to rebuild the state’s rental market before the March election.
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