Sustained decline in Brisbane rental vacancies: Pete Wargent

EXPERT OBSERVER

 

Despite the high rates of apartment construction, strong population growth continues to absorb the rental stock.

The total number of rental vacancies in Australia has declined over the past year from 75,733 to 72,748, according to the latest figures from SQM Research.

This represents a decline from in the national vacancy rate from 2.4 per cent to 2.2 per cent - while construction is now set to slow.

 

SQM reported that Brisbane continues to experience a sustained 2018 decline in vacancy rates from 3.6 per cent in December to 2.9 per cent by July.

And this will likely continue as apartment construction falls away and migration from interstate picks up. 

 

Perth is also now through the worst with vacancy rates trending down (from 5.2 per cent to 4 per cent over the past year) and the oversupply of rentals easing a bit, after several years of rental price declines.

Meanwhile Adelaide tightened again into just 1.3 per cent - getting pretty tight down there now! - and Canberra...well, Canberra is heading for zero at this rate.

Sydney indigestion

 

In Sydney number of vacancies was down from 19,572 to 19,114 in the month - a tight rental market would be represented by more like 12,000 vacancies or fewer - but year-on-year the vacancy rate is considerably higher at 2.8 per cent. 

 

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Sydney tends to be a much busier place in summer these days, so this trend will be one to watch with interest.