Strong residential vacancy rates across the country point to signs that the rental crisis is at the end of its cycle, according to new research.
Figures released this week by SQM Research reveal a continued rising trend in vacancies for most cities, with vacancy rates increasing in every capital city except Darwin, during April 2013.
Nationally, the vacancies rose by 0.1 per cent, bringing the national vacancy rate to 2.0 per cent in April. This is the first time since September 2009 that national vacancies have reached the two per cent mark, excluding seasonal months (December), suggesting that the rental crisis is truly beginning to ease.
According to Louis Christopher, managing director of SQM Research, the two per cent national vacancy rate signals an easing in the tight rental market.
“While the rental market is unlikely to blow-out to an oversupply situation in this cycle, we do believe an easing of what has been an extended period of tight conditions for tenants, will now come into existence,” he said.
“It means rent rises which have been running at above inflation for the past five years, will now slow down to be more in line with CPI and, indeed, this is already occurring according to our newly released weekly rents index.”