In what appears to be good news for the region's landlords, vacancy rates have fallen below three per cent for the Illawarra rental market.
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According to the June Real Estate Institute NSW Residential Vacancy Rate Report, the Illawarra region experienced a 0.8 per cent decrease in rental vacancies, from 3.1 per cent in May to 2.3 per cent in June. This follows a 0.5 per cent increase between April and May.
The Wollongong area also saw decreasing vacancy rates between May and June, dropping 1.2 per cent to 2.1 per cent and 0.3 per cent to 2.6 per cent, respectively.
A vacancy rate of more than three per cent typically indicates tenants have the advantage in a market.
A rate below 2.5 per cent often suggests competition for rentals is strong and landlords are in a powerful position, and below two per cent typically means an area has higher demand and lower supply.
Deputy chair of the Real Estate Institute Illawarra, Jake Mackenzie said these latest figures did indicate landlords had the upper hand over tenants.
However, he said this may well be seasonal, and expected more rental activity to occur as spring time approached.
Mr Mackenzie said new apartments coming online in Wollongong would impact on vacancy rates in future.
"I think as they all come on, the vacancy rates are going to push out," he said.
"There is a proportion of those that have been purchased by owner-occupiers, but also investors. At the prices a few of them were purchased for off-the-plan 12-18 months ago, those investors are going to be looking for premium rents to back up that purchase price.
"So they may have an issue with getting that, and may have to drop the rents if there is an over-supply of rentals in those buildings."
Meanwhile, for the year ending June 2019, Newcastle and the Illawarra have both seen a 0.2 per cent decrease in vacancies in the past 12 months, to 1.7 per cent and 2.3 per cent, respectively.
The REINSW Residential Vacancy Rate Report is based on the proportion of unlet residential dwellings to the total rent roll of REINSW member agents on the 15th of each month.
Brendan Crabb
I'm a member of ACM's national property team, covering the Illawarra and South Coast. Based in Albion Park, NSW, I write about exciting, interesting or just downright quirky properties that have been listed for sale, major sales, market trends, auctions and more. One of my favourite aspects of being a journalist is I believe everyone has a story to tell. What's yours?
I'm a member of ACM's national property team, covering the Illawarra and South Coast. Based in Albion Park, NSW, I write about exciting, interesting or just downright quirky properties that have been listed for sale, major sales, market trends, auctions and more. One of my favourite aspects of being a journalist is I believe everyone has a story to tell. What's yours?
