Property investors to see net cash flow fall: SQM Research

New SQM Research vacancy rate figures have seen increases in the vacancy rate nationally, with the only capital recording a decrease being Hobart.

This is the highest result recorded since December 2013.

SQM Research’s managing director Louis Christopher said that while this isn’t a “rout” for investors quite yet, it does paint a picture of rents unexpected to rise above inflation over the next 12 months.

“At this stage the market is increasingly favouring tenants across the country,” said Christopher.

“This means that rental yields will continue to fall, thereby reducing the net cash flows for new property investors in the market place.”

Nationally, vacancies are recorded at 2.3% in May or 69,258 nationally.

Melbourne, whose vacancy rate is the highest of the capital cities, sits at 2.7%, while Darwin, Hobart and Adelaide have the tightest vacancy rates – at 1.6%.

Perth recorded the highest year increase – up 0.9% to 2.5%. Sydney recorded a 1.9% vacancy rate.

See over page for the summary table of vacancy rates and their latest changes.

Latest recorded vacancy rates

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Source: SQM Research