Perth and Darwin's vacancy increases "alarming": SQM Research

Perth and Darwin's vacancy increases "alarming": SQM Research
Jennifer DukeDecember 7, 2020

Perth and Darwin’s vacancies continue to increase in an ‘alarming’ fashion, according to SQM Research’s November figures.

The number of vacancies nationally has increased over the month, to 2.2% at 65,777 vacancies, however much of this is seasonal, including due to university students exiting their rental accommodation.

Where many capital cities have remained stable year on year, Perth and Darwin have stood out for their rising vacancy rates. As of November 2013, Perth and Darwin recorded vacancy rates of 1.7% and 1.3% respectively. This year, Perth is now recording a 2.5% rate, with Darwin at 2.8%.

Melbourne has dropped back 0.3% to 2.7%, while Hobart has dropped to 1.1% from 1.4%. Canberra dropped 0.1% to 1.9%.

Brisbane is up 0.1% over the year to 2.4%, while Sydney remains stable at 1.7%.

SQM Research’s managing director Louis Christopher puts the falls in Hobart as due to a recovery in the local economy and possibly the tourist industry.

Meanwhile, he suggests that Melbourne’s small decline may be due to a brief slowing in construction activity or surge in population.

“On a year-on-year basis we are seeing rises in Darwin and Perth. The reasons for the rises in Darwin and Perth are pretty clear in the sense that it is related to the ongoing mining downturn, causing a lot of loss of employment, particularly temporary/contract jobs,” Christopher said.

Asking rents in Perth and Darwin are also dropping dramatically. Darwin is down 10.8% in asking rent for houses and a smaller 0.3% drop for units over the year. Perth has seen a 9.5% decline for the asking rent for houses and 9.3% for units.

Current capital city vacancy rates (as of November 2014):

  • Darwin: 2.8%
  • Melbourne: 2.7%
  • Perth: 2.5%
  • Brisbane: 2.4%
  • Canberra: 1.9%
  • Sydney: 1.7%
  • Adelaide: 1.5%
  • Hobart: 1.1%

Source: SQM Research

Jennifer Duke

Jennifer Duke was a property writer at Property Observer

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