Rental vacancies drop nationally
Rental vacancies drop nationally
Posted on Monday, November 18 2013 at 8:38 AM
Data released by SQM Research shows rental vacancy rates continue to fall across Australia.
The researcher says
during October this year, the vacancy rate fell to two per cent with a total of
57,471 vacancies nationwide.
Five of the
country’s eight capital cities saw their vacancies decline.
Hobart had the
largest percentage drop in the month with a fall of 0.3 per cent.
Adelaide had the
next largest fall recording a 0.2 per cent drop.
Other capitals to
see vacancies reduce were Sydney, Perth and Canberra.
Melbourne’s
vacancy rate held steady, while Brisbane and Darwin saw a rise of 0.1 per cent
during the month.
SQM says Hobart is likely to see some upwards sustained pressure on
rents as it’s clearly recording lower vacancies than 12 months ago.
Louis Christopher, managing director at SQM Research, says this is the
fourth straight month of a national tightening in vacancies.
Christopher notes the numbers for Sydney in particular are unusual.
“We know the sales market is very active and normally, in most
recoveries, vacancies rise as renters turn themselves into first homebuyers,
“But Sydney is now recording a very tight vacancy rate of 1.5 per cent.”
Christopher says this shows first homebuyers are remaining renters for
longer in the New South Wales capital.
“If Sydney vacancies remain this low, that will put renewed upward
pressure on rents again for next year.”
While the results are positive for landlords, SQM Research does expect
vacancies to begin to rise in the lead up to Christmas as part of the normal
yearly cycle.
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