SQM Research has highlighted a definite slowdown in Australia’s rental market that is increasingly favouring tenants, after findings show rental vacancies have risen across the country.
June data from SQM Research shows a national vacancy rate of 2.3 per cent, making it the highest result since December last year.
A total of 2,645 rental properties were on the market last month, which compares to 2,785 in June 2013.
The only anomaly was Hobart, which witnessed a fall in its rental vacancy rate from 2.6 per cent in June last year to 1.6 per cent in June 2014.
SQM Research believes this is indicative of a wider trend, suggesting there is a definite slowdown throughout Australia's rental market.
SQM Research managing director Louis Christopher commented that "At this stage the market is increasingly favouring tenants across the country. While this is not yet a rout for landlords, it certainly is at a stage where rents are unlikely to rise above inflation for the next 12 months.
"This means rental yields will continue to fall, thereby reducing the net cash flows for new property investors in the market place."
The group also released details of its Asking Rents Index, which showed stagnation in prices across state and territory capitals.
No month-on-month change was seen in the value of houses, while there was a 0.7 per cent fall in asking rents for units.