Sydney’s vacancy rate has risen to 1.9 per cent in May

The rising number of rental properties in Sydney is easing the squeeze on tenants.

Renters in Sydney

Sydney’s rental squeeze is easing as more properties come onto the market.

Rental listings are up 0.2 per cent to 1.9 per cent, according to the latest Real Estate Institute of NSW Vacancy Rate Survey.

The rise follows months of a tight market, with the March rental vacancy rate of 1.4 per cent the lowest since November 2011.

REINSW president Malcolm Gunning attributed the rise to the completion of large-scale apartment projects, with nearly half of recent unit sales made to investors who will be looking for tenants.

New developments in Sydney are helping to push vacancy rates up.

Sydney’s middle ring – suburbs 20km from the city – had the highest vacancy rate of 2.5 per cent, up from 2 per cent in April.

Outer suburbs like Fairfield, Campbelltown, Blacktown and Liverpool have been the hardest places to find rental accommodation.

Closer to the city, the vacancy rate has risen 0.3 per cent to 1.9 per cent, with the overall

rental market returning to a more neutral level.

“Stock is starting to meet the underlying demand so the tenants get a fair go,” Mr Gunning said.

But Michael Conolly, of Network Property Management at McGrath, said Sydney was still not out of the woods yet.

“A vacancy rate of 1.7 per cent suggests it’s still a tight market as they’re sitting below 3 per cent,” he said.

The number of rentals in suburbs like Ashfield have gone up in recent weeks.

Marc Crisafulli, senior property manager at LJ Hooker Ashfield, said he had noticed the number of rental properties go up in the last three or four weeks.

“Our average time on market is less than 12 days,” Mr Crisafulli said. “Three months ago, things were definitely moving very quickly and our average time on market was less than seven days.”

“Nowadays, tenants have a bit more choice and they’re definitely taking their time. They’re having a good think and checking what else is on the market.”

Felicia Hewson and Brendan Lal took six months to find an apartment to rent.

“It was a bit challenging because we both work Monday to Friday,” Ms Hewson said. “By the time we got there on a Saturday, people had already put in their application, or were pre-approved so half the properties we were interested in had already been leased.”

The couple felt strong competition for rental properties.

“We didn’t want to settle on anything and have issues with it down the track,” she said.

Eventually, the couple found their ideal one-bedroom apartment in Ashfield through LJ Hooker Ashfield.