Rental crisis eases as investors return

Simon Hampel · 26th Feb, 2009

Rental crisis eases as investors return: REINSW - ABC News (Australian Broadcasting Corporation)

The Real Estate Institute of New South Wales says there are signs Sydney's rental crisis is easing, as investors return to the market.

While the overall vacancy rate remains unchanged, the percentage of available properties 25 kilometres or more from the CBD has jumped from 1.4 per cent in December to 1.7 per cent in January.

The Institute's president, Steve Martin, says the figures are based on what properties its members have available.

He says economic conditions, and the federal Government's first home buyer grant increase, are helping to free up rental accommodation.

"[Lower] Interest rates, coupled with the first home buyer grant, is playing a leading role in solving what has been a rental crisis," he said.

"The investors are certainly coming back into the market place, and tenants who normally would be renting have in fact been given the opportunity to own their own property which takes them out of a tenancy situation."

The Institute's President Steve Martin says the figures are based on information received from members.

He says with investors coming back into the market, the trend is likely to continue.

"The areas that fall into the affordable price ranges, I think the investors are starting in those locations and I think that's probably reflected in the vacancy factor," he said.

"I think the next area that they'll be picking the eyes out of will be the middle area, and then of course they'll be moving closer to the city."
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TradingEd · 2nd Mar, 2009

An interesting read.

Thank you

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Rental crisis eases as investors return

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Rental crisis eases as investors return

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