Ensure you never miss an issue of the
real estate business bulletin
Melbourne vacancy, Perth rents plummet

Melbourne vacancy, Perth rents plummet

by Steven Cross 0 comments

Mixed results in the latest data show that the vacancy rate in Melbourne has dropped to levels not seen since May 2011, while rents in Perth have dropped by 10 per cent.

According to SQM Research’s February data, Melbourne’s vacancy rate dropped 0.5 percentage points during February to reveal a vacancy rate of 2.4 per cent.

All areas of the Victorian capital recorded a reduction in vacancies. However, managing director of SQM Research Louis Christopher warned that CBD vacancies were still volatile.

“It has been some time since we recorded a definitive decline in vacancies in what could be a sign that the excess stock seen in Melbourne is starting to be occupied,” he said.

Nationally, residential vacancies decreased by 0.1 percentage points to 2.1 per cent.

Year on year, vacancies have still risen by 0.3 percentage points, with the country experiencing a substantially looser rental market than this time last year.  

SQM Research’s Asking Rents Index revealed that asking prices for rental properties continued to record mixed stories during February, with the capital city average revealing a 0.7 per cent decrease in asking rents for houses and a 1.2 per cent increase in asking rents for units since February 2013.

Sydney was the outperformer of the capital cities over the year, with a 2.3 per cent increase in asking rents for houses and a 3.6 per cent increase in asking rents for units on a yearly basis.

However, Canberra and Perth recorded the steep declines, with Canberra revealing a 7.6 per cent decrease in asking rents for houses and a 5.5 per cent decrease in asking rents for units.

Perth recorded a 10.7 per cent decrease in asking rents for houses and a 7.4 per cent decrease in asking rents for units since February 2013.

Mr Christopher attributed the fall of Perth rents to the downturn of the mining sector.

“Overall rental conditions continued to modestly favour landlords over the course of the month, with some interesting results coming out of Melbourne and Perth," he said.

“Meanwhile, the sharp falls in rents for Perth are in line with rising vacancies being recorded there and are a manifestation of a rather rapid decline in demand for accommodation.”

Melbourne vacancy, Perth rents plummet
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
An industry where the resilient succeeds

Tim Heavyside believes that a strong support team and good foundations are paramount to success in the real estate industry, and with regu...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?