SYDNEY, Aug. 15 (Xinhua) -- Australia's largest city Sydney's vacancy rate reached 2.8 percent, the highest level in 13 years, while rental property vacancies across Australia rose 2.2 percent in July, with a total of 72,458 properties sitting empty across the country.
General manager of SQM Research Louis Christopher told Xinhua on Wednesday that he believes that there's a combination of reasons contributing to the rise.
"Firstly we are at record levels for dwelling completions at the moment and we've also experienced a slow down in population growth in Sydney," he said.
"Together, this has put pressure on rental vacancy rates."
"On top of that, Sydney is also experiencing a general housing downturn on the buy side of the market."
With rental prices already beginning to decline in the harbour city, many property observers have warned of steep correction.
But Christopher said, there shouldn't be any panic from property investors.
"I don't think there's going to be a big fall," he said.
"Sydney is a diversified economy, even though it has slowed, the population is still growing, so I think it is very unlikely we will see a steep crash in rents."
"But it could still come down from current levels, likely under 10 percent from total peak to trough."