Rental vacancy rates down across the board

“Rental vacancies in Sydney dropped to 2.9 per cent, the lowest in a year, led by areas such as Chatswood, Auburn and Arndell Park, the latest REINSW Residential Vacancy Rate Report shows.”

The September REINSW Residential Vacancy Rate Report reveals Rental vacancies in Sydney have dropped to their lowest rate this year, down a substantial 0.7% on August. Middle Sydney saw the biggest drop of 0.9% compared to August, followed by Outer Sydney (down 0.8%) and Inner Sydney (down 0.3%). It was a trend mirrored by the Hunter which is experiencing its lowest vacancy rates in years at just 1%. The Illawarra followed suit with a drop of 0.1%, but Wollongong continues to buck the trend, with rental vacancies up by 0.4%.

“We haven’t seen Sydney’s vacancy rates this low since October last year,” says REINSW CEO Tim McKibbin, “with a reduction in the available rental supply, we could see upward pressure on rents.”

Sutherland to Cronulla Active Transport Link

The Sutherland to Cronulla Active Transport Link (SCATL) is a pedestrian and bicycle path between Sutherland and Cronulla to help make walking and bike riding a more convenient, safer and enjoyable transport option.

Key benefits

  • Connection to key destinations such as transport interchanges, schools, residential areas and business precincts
  • Significant environmental and health benefits, encouraging people to walk or cycle in the area for fun or exercise
  • Provides a practical alternative to the car for short trips will reduce local traffic congestion

Project status

Construction is underway on the first stage between Sutherland and Kirrawee. Stage 1 will be open in sections as each area is completed with bike riders and pedestrians able to use all of Stage 1 by early 2020.

The Linden Back On Track

Sutherland apartments development ‘progressing well’ after earlier problems

Quantum Group managing director Peter Gribble said a new builder, Devakon, had completed the structure and started internal building of the units.

Mr Gribble said it was expected the project would be completed in the first half of next year, “three to four months” behind the original schedule.

The development, in Linden Street, comprises 62 units over six levels in two blocks.

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Beautiful views over Sutherland to the Royal National Park.

Post election confidence good property market

The re-election of the Coalition Government will likely see a return in confidence to the Sydney housing market, local developer Peter Gribble says. 

Mr Gribble is an economist and the Managing Director of Quantum Group, a property development firm that has undertaken a number of projects within the Shire, including The Linden, which is currently under construction and The Adelong, which is settled and owners have moved in.

Mr Gribble believes the back to back elections caused some hesitation in the market, due to a lack of certainty around future policy.

Labor went to the federal election spruiking reforms to negative gearing in an attempt to address “housing affordability”. This led to significant reduction in enquiries.

However, with the election now behind us and the next three years of policy locked in, he believes investors and first home buyers will likely return to the market.

“My incling is that there is a big sigh of relief that we’re going to retain the current government because there’s a lot more certainty in the policies…” he explained.

“Changes to negative gearing has always been a problematic proposal. When Paul Keating first raised the idea it created a lack of confidence in the markets,” he continued.

“People stopped investing, which caused a reduction in building and rents went up as a result. So, I think retaining that policy is a recognised position to increase housing stock.”

Mr Gribble said there currently wasn’t an oversupply of new apartments in the Sydney market. In fact, in a lot of suburbs, close to 90 per cent of new apartments are being sold off the plan. This is leading to a shortage in the market itself.

However, the return of consumer confidence in the second half of 2019 will likely lead more developers to add projects to their books.

While, Mr Gribble believes the retention of the Coalition Government is a net positive for the market, he believed more reforms are needed to really address the housing affordability issue without negatively impacting upon equity.

The best way to do this, he believes, is by scrapping legislation which mandates banks set their loan serviceability rates 7.2 per cent, double the current interest rate.

The point of the policy is to stop people from getting loans while interest rates are low and then not being able to pay them back if they rise.

However, Mr Gribble points out, interest rates would need to go up more than 18 times to hit the current serviceability rate. He believes that is too high.

“People can’t borrow as much because of that disparity and I think that is something that needs to be addressed urgently,” he said.

For enquiries about The Linden call Andrew on 0410 681 773.