Melbourne tips the 3% vacancy rate equilibrium: SQM Research

After some modest declines and stagnation during the month of October, vacancy rates rose 0.1% on a national level during the month of November.

But significantly Victoria tipped the 3% equilibrium, according to SQM Research.

On a national level, vacancy levels rose from 1.8% to 1.9%, with a total of 54,067 vacancies.

Melbourne had a 3.2% vacancy rate, an increase of 0.4% from the October figure of 2.8%.

Melbourne has a total of 13,411 vacancies and is up year-to-year by 0.2%. SQM Research considers 3% to be “equilibrium” in rental markets, ie a balance between landlord and renter interests. 

Darwin also experienced a modest increase of 0.4%, from 0.7% to 1.1%, totally 256 vacancies. This could spell some relief for Darwin, which has been recording a vacancy rate of less than 1% for quite some time now.

Sydney is up by 0.2% to 1.8%, with a total vacancy rate of 10,048. The figure accords with the recent Real Estate of NSW data.

Adelaide rose 0.1% to 1.5% with a total vacancy rate of 2,429 during the month of November.

Canberra went from 1.0% in October to 1.3% in November, an increase to 684 vacancies.

Hobart had a gradual increase of 0.1% to 2.1% with 571 vacancies.

Perth is still a tight market, increasing 0.1% to 0.7% with a total vacancy of 1,302. Year-on-year, Perth has been unchanged.

“The rise in vacancy rates this month is the result of a seasonal effect which occurs normally at this time of year. We expect December to also record a rise as well, due to seasonality,” says managing director of SQM Research Louis Christopher.