While there is an oversupply of apartments in some Sydney hubs, such as Parramatta, the inner ring market remains in good nick.
The latest REINSW survey recorded inner Sydney vacancy rates tightening to just 1.3 per cent, which is the lowest level in two years.
In December, the REINSW had reported inner Sydney vacancy rates tightening from 2.1 per cent to 1.8 per cent.
SQM Research's asking rents index for Sydney shows apartment rents rising by around 5 per cent over the last year to exactly $500/week.
Source: SQM Research
The main driver is strong population growth in Sydney, and a high level of demand to live close to the city.
With the clampdown on investors and vacancy rates at two year lows, inner Sydney rents look all set to rise further.
Despite a considerably greater volume of pre-Easter auctions Sydney recorded a very high preliminary auction clearance rate of 76 per cent.
A glance through the data suggests that the Hills District and some western suburbs didn't fare quite so well, dragging down the city averages.