Vacancy rates ease after seasonal spike: Pete Wargent
Vacancy rates declined in January, after December's seasonal spike, according to SQM Research.
All of the capital cities recorded a drop in January, not unusually for the time of year.
Nationally the vacancy rate of 2.4 percent was the same as one year previously.
The tightest market was Hobart at 0.7 percent, the Tasmanian capital recording strong gains in median asking rents, while the highest vacancy rate was in Perth at 4.8 percent.
Although the figures aren't seasonally adjusted, below I've smoothed them on a 4mMA basis to give some kind of feel for the trend.
Perth and Darwin have continued to record declining rents, while SQM noted that inner city apartments in Brisbane have seen declines of 2.5 to 5 per cent in asking rents, something I can confirm from having witnessed it first-hand.
To date the Sydney and Melbourne apartment markets appear to be holding up better, with the reported vacancy rate in Melbourne actually lower than a year ago, and median asking rents higher in both of the most populous capital cities.
After some truly diabolical declines in dwelling prices ranging anywhere from 50 to 90 per cent in some cases, SQM notes that the bust in some mining towns may now finally be bottoming out.
Vacancy rates are down in a range of resources towns from a year previously.
Source: SQM Research
No, still not a buy, before you ask!
PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and blogger.