Sydney rents rise, vacancies fall

Median Sydney rents have increased by an average of $5 a week over the past 12 months in the inner and outer suburbs and remained stable in the middle band. Vacancy rates have also dropped, falling 3.4 per cent in October from 4.5 per cent last December. The best-performing municipality was Kogarah where one-bedroom units saw an 18.2 per cent rise to a weekly median of $195. Rental increases do not necessarily translate into higher returns for investors, however, as the rises have been minimal compared with increases in property prices. Landlords have also spent more on their properties, being forced to upgrade them when vacancy rates were higher.