Increased buyer activity eases rental market pressure

An improvement in the rental vacancy rate in Australia’s tightest rental market – Sydney – signals first home buyers and investors are returning to the market.

According to figures released by the Real Estate Institute of NSW (REINSW), the percentage of available rental properties in suburbs 25 kilometres or more from the CBD jumped significantly in January 2009 to 1.7 per cent.

This represented a significant improvement from the 0.8 per cent low recorded in May last year.

“At last it seems we are seeing some return to the market by investors, at least in the key population belt of Sydney, “REINSW president Steve Martin said.

“Importantly many tenants are taking advantage of increased first home buyers grants and achieving the Australian dream of home ownership, which is freeing up rental stock.”