Rental markets still tight

Rental markets still tight

20 May 2011 by Staff Reporter 0 comments

Staff Reporter

Vacancy rates improved slightly in April but rental markets remain tight throughout much of the nation, according to new figures from SQM Research.

The national vacancy rate climbed up to 1.8 per cent in April to a national figure of 47,787. This compared to 1.6 per cent in March and 1.4 per cent one year ago.

Although the month-on-month and year-on-year increase in vacancies theoretically reflects a slight relaxation in the rental market SQM Research managing director Louis Christopher said the rental market was still tight.

“SQM’s rental vacancy rates highlight the endemic problem of the various rental markets around the country,” he said.

“There really is a shortage of rental accommodation for a number of areas and at this stage I fail to see how this problem is going to be rectified anytime soon.

“The current housing downturn only aggravates this problem as many would-be home buyers hold off and rent for longer durations.

“Developers also fail to get the required pre-sales for lending, and so even less new stock is built.”

In April Canberra remained the tightest capital city rental market with a vacancy rate of just 0.7 per cent. Perth wasn’t far behind at 1.1 per cent, followed by Adelaide and Sydney at 1.4 per cent.

Of all the capital cities Melbourne had the highest vacancy rate of 2.6 per cent, or 9,558 dwellings.

Staff Reporter

Vacancy rates improved slightly in April but rental markets remain tight throughout much of the nation, according to new figures from SQM Research.

The national vacancy rate climbed up to 1.8 per cent in April to a national figure of 47,787. This compared to 1.6 per cent in March and 1.4 per cent one year ago.

Although the month-on-month and year-on-year increase in vacancies theoretically reflects a slight relaxation in the rental market SQM Research managing director Louis Christopher said the rental market was still tight.

“SQM’s rental vacancy rates highlight the endemic problem of the various rental markets around the country,” he said.

“There really is a shortage of rental accommodation for a number of areas and at this stage I fail to see how this problem is going to be rectified anytime soon.

“The current housing downturn only aggravates this problem as many would-be home buyers hold off and rent for longer durations.

“Developers also fail to get the required pre-sales for lending, and so even less new stock is built.”

In April Canberra remained the tightest capital city rental market with a vacancy rate of just 0.7 per cent. Perth wasn’t far behind at 1.1 per cent, followed by Adelaide and Sydney at 1.4 per cent.

Of all the capital cities Melbourne had the highest vacancy rate of 2.6 per cent, or 9,558 dwellings.

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2016

With a combined sales volume of $13 billion in 2016, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
REVEALED: The 10 best agents in Australia for 2017

For the first time ever, the top 10 agents in the REB Top 100 Agents ranking are revealed in this exclusive podcast. ...

View all podcasts

Are dodgy agents being punished enough?

Yes (8.6%)
No (55%)
Only in some states (2.3%)
Not all dodgy agents are being found out (34.1%)

Total votes: 220
The voting for this poll has ended on: April 15, 2017
Do you have an industry update?