Sydney’s rental vacancy rate has risen to its highest level in more than 2 years, while Newcastle’s vacancy rate remained flat, according to the latest data released by the REINSW.

The percentage of available properties in Sydney now stands at 1.6%, an increase of just 0.3% compared to the previous month’s results. And, while an improvement, it is unlikely to deter investors who are still seeing the possibility to cash in on the supply shortage.

“Even though these are the best results in two years, they are nothing to write home about,” said REINSW President Wayne Stewart. “To end the rental crisis that has gripped NSW, we need to see a vacancy rate of between 3% and 4%.”

“Unfortunately a vacancy rate of 1.6% just doesn’t cut it, even if it is the highest result we have seen since August 2007.”

Sydney’s ‘middle’ suburbs, between 10 and 15 kilometres from the CBD, recorded the highest increase of 0.8% to 2.3%. The percentage of available properties in “inner” suburbs between 0 and 10km from CDB rose 0.2% to 1.5%. In ‘outer’ suburbs which are more than 25 kilometres from the CBD, the vacancy rate rose 0.1% to 1.1%.

The percentage of rental vacancies in Newcastle remained unchanged at 1.6% whilst in Wollongong, available rental properties increased by 0.2% to 2%. The central coast vacancy rate fell by 0.2 to 1.3% and the Coffs Harbour vacancy rate declined from 2.7% to 2.4%.