National residential vacancies edged down in October: SQM Research

National residential vacancies edged down in October: SQM Research
National residential vacancies edged down in October: SQM Research

National residential vacancies edged down in October according to SQM Research, with a national vacancy rate of 2.3 percent, down from 2.4 percent in September 2016.

Louis Christopher, SQM Research managing director said the biggest capital cities, Sydney and Melbourne recorded vacancies rates of 1.7 percent and 1.9 percent, respectively, down marginally from September 2016, while Brisbane’s vacancy rate rose to 3.0 percent, up from 2.9 percent, one of only two capital cities to record a rise, along with Darwin (up to 3.2 percent from 3.1 percent).

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National residential vacancies edged down in October: SQM Research

"Perth reported the highest vacancy rate at 4.9 percent, though it was down slightly from the previous month. Hobart had the tightest rate at just 0.5 percent, down from 0.6%. Year-on-year results demonstrate that the national vacancy rate is steady," he said.

"Sydney remains the most expensive city for rents in Australia, where asking rents for houses sitting at $738 a week and $510 for units. Asking rents have surged in Canberra, up 9.3 percent for houses and 8.0 percent for units from a year earlier. Despite a tight vacancy rate, Hobart continues to offer the most affordable rental accommodation, with houses costing just $356 a week and units averaging $297 a week.

"Reflecting its high vacancy rate, Perth has recorded falls in asking rents of 11.0 percent for houses and 10.7 percent for units over the past 12 months. Yearly falls have also been posted in Darwin, with asking rents down 2.5 percent for houses and 3.1 percent for units. In Brisbane too, asking rents are down 1.8 percent for houses and up just 1.1 percent for units.

"Asking rents have slipped back in Brisbane as vacancy rates have continued to rise this year. At 3.0 percent, the rental market is finally favouring tenants and given the surge in new apartment supply, rents in Brisbane could continue to fall from here, particularly in the inner city.

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National residential vacancies edged down in October: SQM Research

“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 believe that oversupply will largely be limited to inner-city areas where apartment supply is rising the most, which will temper rental growth."

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Property News Rental market

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