Sydney Rental Market Tight

Submitted by Craig Strzelecki on 14 September, 2007 - 14:25

The Sydney rental market is tight. Only 29,300 houses and units have started construction across NSW in the last financial year – the lowest level since the Australian Bureau of Statistics started collecting data in 1969. It's the fourth year of construction decline and fifth in a downturn. The extremely tight rental market in Sydney is at a 1.5 percent vacancy level – great for landlords. Mellor from BIS Shrapnel has said that: "As residential construction has fallen by about 50 per cent from its peak four years, I expect the vacancy rate might get to below 1 per cent next year, which hasn't been seen since 1986. Investors are sitting on the sidelines. The Sydney market is now so dominated by high-rise density that unlike previous cycles, or as in other states, it needs investors to return to the market before construction can get under way," Mr Mellor said. As a result of the tight rental real estate market, predatory lenders are appearing on the landscape. A new survey shows women in low-income households on the urban fringe are the main victims of predatory lenders. Predatory lending - where a lender or broker pressures a borrower to accept unfair loan terms and conditions - is not widespread, but is targeted at specific social groups.

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