Ensure you never miss an issue of the
real estate business bulletin
Vacancy rates drop as seasonal moving trend takes effect

Vacancy rates drop as seasonal moving trend takes effect

Vacancy rates drop
by Tim Neary 0 comments

National vacancy rates fell to 2.2 per cent in February, from 2.3 per cent, led by a sharp drop in Melbourne rental properties, new data has revealed.

National vacancy rates fell to 2.2 per cent in February, from 2.3 per cent, led by a sharp drop in Melbourne rental properties, new data has revealed.

The number of vacancies across the country has fallen to 69,727.

Melbourne’s vacancy rate dropped to 1.4 per cent from 1.8 per cent and Canberra’s fell to just 0.8 per cent from 0.9 per cent, while asking rents increased in both cities, according to new data released by SQM Research.

The research also found that despite vacancy rate inching higher in Hobart, to 0.5 per cent from 0.4 per cent, the city still has a deep shortage of rental properties. 

In Sydney, the vacancy rate was steady at 2.3 per cent from January, but well up from 1.8 per cent a year earlier, reflecting slightly easier rental conditions.

Brisbane’s vacancy rate dropped to 3.4 per cent, from 3.6 per cent, as the surplus eased, although asking rents fell over the month.

In Perth, vacancy rate dropped to 4.1 per cent from 4.4 per cent, providing further evidence of the city’s burgeoning recovery.

Darwin’s vacancy rate bucked the trend and rose to 3.3 per cent from 3.1 per cent.

SQM Research managing director Louis Christopher said that the numbers reflected tighter markets in most cities.

He added that this is largely seasonal as students and workers tend to move at the beginning of the year.

“Canberra’s rental market has continued to tighten as workers flooded back to the national capital, and we’ve also seen a sharp drop in Melbourne’s vacancies, which has pushed up asking rents,” the MD said.

“Melbourne’s rents could continue to climb higher this year, given the explosive population growth that it is currently experiencing.

“In contrast, Sydney’s vacancy rate has moved higher, and is well above year-ago levels, taking pressure off asking rents, which fell over the month to 12 March.”

Mr Christopher added that Sydney rents could continue to ease this year, given the higher vacancy rate.

Rents

Capital city asking rents over the month fell by 0.4 per cent to $560 a week for houses. Unit rents were steady at $442 a week. Over the year, house rents rose by 0.4 per cent while asking rents for units increased by 1.8 per cent.
 
Reflecting a shortage of rental properties, asking rents rose the most in Hobart over the month, by 5.2 per cent and 4.2 per cent for houses and units, respectively.

The asking rent for a three-bedroom house in Sydney remains the highest in the nation at $739 a week, while for units it stands at $524.

Canberra follows at $619 a week for houses and $438 for units.

Asking rents for houses rose in Melbourne by 0.6 per cent over the month to $531, while unit rents rose by 0.9 per cent over the month to $404 a week.

Vacancy rates drop as seasonal moving trend takes effect
lawyersweekly logo
promoted content
Recommended by Spike Native Network
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
The difference between an average agent and one who dominates

McGrath Crows Nest’s Peter Chauncy is number 10 in this year’s REB Top 100 Agents ranking. Peter, however, is more likely not surprised ...

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?