In great news for investors of residential rental properties in Sydney, the city's overall vacancy rate fell for another consecutive month in November to reach an 18-month low.
Information from the Real Estate Institute of New South Wales (REINSW) recorded a 0.1 per cent drop across the city to bring the vacancy rate to 1.6 per cent overall.
Usually, a vacancy rate of 2 per cent indicates a tight market, with more demand from rental accommodation seekers outweighing the number of available properties.
REINSW President Malcolm Gunning stated the end of 2013 has seen a strong demand for Sydney rental properties from tenants, leading to a tough time for accommodation seekers to find a home during the Christmas period.
Mr Gunning attributed the tight rental market to the rising population in the city, as well as the lack of new housing developments that is currently fuelling the shortage of available homes.
The outer suburbs of Sydney recorded the lowest vacancy rate at a very tight 1.3 per cent, while the inner and middle suburbs reported 1.6 per cent and 1.8 per cent respectively. The middle suburbs actually experienced a small improvement over November after vacancies increased by 0.2 per cent.
This is encouraging news for owners of rental properties in these areas, especially in the middle suburbs where vacancies are extremely tight.
Price and value growth
The Sydney property market has been a hot topic in the media for many months now, after real estate in the region has recorded strong results throughout 2013.
Information from the RP-Data-Rismark Home Value Index recorded annual growth of 12.5 per cent for dwelling values in Sydney for the 12 months ending November. This is the highest rate of annual value growth in the country, with Perth and Victoria lagging a few percentage points behind.
What is in store for Sydney's future?
Sydney's real estate market recorded strong sales growth over the year, according to the 'Annual state of the market report' from Australian Property Monitors (APM).
Author and Senior Economist Dr Andrew Wilson said he expects house prices will moderate through next year.
He said prices will increase between 5 per cent and 7 per cent throughout 2014. This activity is forecasted to occur within the first half of the New Year.
This information could indicate now is the time to get into the rental property market to secure an investment before prices continue to rise any further.
