February plunge for Melbourne vacancy rates: SQM Research

February plunge for Melbourne vacancy rates: SQM Research
Jessie RichardsonDecember 7, 2020

According to the latest data from SQM Research, Melbourne’s vacancy rate is at its lowest point since May 2011.

Melbourne’s vacancy rate fell 0.5 percentage points in February to 2.4%. Rates in Melbourne’s north, west, east and inner east regions generally trended downwards, as did the CBD.

Nationally, the number of residential vacancies dropped in February, with the national vacancy rate dropping 0.1 percentage points to 2.1%, with 60,330 vacancies. SQM Research’s results show that vacancies have risen year on year, up 0.3 percentage points.

Source: SQM Research

SQM Research’s Asking Rates Index showed for that asking prices for rental properties were mixed, with capital cities recording a 0.7% decrease for houses and a 1.2% increase in the asking rents for units from the year to February.

Sydney had the greatest increase in asking rents over the year, with asking rents 2.3% up for houses and 3.6% up for units for the year. Canberra and Perth recorded significant declines for the same period, with asking rents down 7.6% for houses and 5.5% for units in Canberra. Asking rents decreased by 10.7% for houses and 5.5% for units in Perth.

The research firm attributes the decline in rental prices for Canberra to government job cuts, which SQM Research says have seen residents departing the area, while in Perth the downturn in the mining sector is behind the fall in demand for rental dwellings.

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