Vacancies up slightly year-on-year: Pete Wargent

Vacancies up slightly year-on-year: Pete Wargent
Vacancies up slightly year-on-year: Pete Wargent

 

SQM Research reported that year-on-year vacancy rates are slightly higher.
 
Sydney and Melbourne reported vacancy rates of 1.8 percent and 2 percent respectively.
 
In Brisbane, where there is still a significant pipeline of inner city apartments set to hit the market, vacancy rates are 2.9 percent. 
 
Perth's vacancy rate was steady from the previous month at 5 percent, while the Darwin market appears to be have steadily improved with vacancy rates at 3.1 percent. 
 
The tightest markets are Hobart (0.6 percent) and Canberra (1.1 percent), and asking rents have increased accordingly in these cities. 
 

Vacancies up slightly year-on-year: Pete Wargent
 
Smoothing the data shows that over the past year vacancy rates have been relatively flat in Sydney and Melbourne, but vacancies have generally been elevated in the resources states. 

 
Vacancies up slightly year-on-year: Pete Wargent
 
This has been reflected in soft rents in Perth and Darwin.
 
Despite the apartments pipeline asking rents for units are higher year-on-year in each of the three most populous cities, particularly in Sydney (+4.4 per cent) and Melbourne (+5.1 per cent) as the new stock comes online. 
 
Concluded SQM Research:
 
"Looking forward, vacancies are likely to rise in Melbourne, Brisbane and Sydney over 2017 as more new high-rise apartment developments come onto the market. 
 
However, we maintain that the oversupply issue appears to be constrained to concentrated areas such as the inner-city regions. 
 
We are not as confident we will see a contagion affect where the whole capital city market is affected."
 

PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and blogger.

His latest book is Four Green Houses and a Red Hotel.

Pete Wargent

Pete Wargent

Pete Wargent is the co-founder of BuyersBuyers.com.au, offering affordable homebuying assistance to all Australians, and a best-selling author and blogger.

Tags: 
Property market Residential Vacancies

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