Sydney and Melbourne CBD landlords see further improvement in vacancy rates: SQM
SQM Research has again advised the national residential rental vacancy rate continues to tighten, down at 1.8% from 1.9% in April.
The total number of vacancies Australia-wide now stands at 62,144 residential properties, down from 66,411 in April.
There were 76,600 vacant dwellings last December.
While they remain elevated, the latest fall in vacancy rates included the Sydney CBD down to 6.9% and Melbourne CBD to 8%.
Sydney CBD briefly sat at 16 percent in May last year, and and its 6.9% current rate has only been matched on two prior occasions, briefly in 2019 and 2009.
Melbourne CBD's vacancy rate peaked last August at close to 11 percent, and its 8% current rate has only been matched on two prior occasions, briefly in 2010 and 2005.
The vacancy rates continuing to fall Australia-wide was "forcing up in rents, particularly in regional locations," Louis Christopher, the boss of SQM noted.
"This trend is likely to remain through the second half of the year, given the fierce competition for rental accommodation in many areas.
"We are still seeing falling vacancies everywhere from Victoria’s Mornington Peninsula, the Gold Coast, right through to inland areas like the Murray Regions of NSW and South Australia to outback Northern Territory, along with Darwin, which is having the effect of boosting rents as tenants compete for rental homes.
"However, vacancies rates rose for the NSW North Coast, as some renters headed back to town and we also saw a rise in vacancy accommodation in Perth, though the rate was unchanged.
“In addition, in what is long-awaited news for landlords in the Melbourne and Sydney CBDs, vacancies rates have fallen there too.
"Those vacancy rates could begin a downward trend over the second half of 2021, particularly in Sydney, as life resumes relative normality.
"However, the loss of international student tenants, along with unit oversupply, will keep vacancy rates relatively high as the COVID-19 pandemic continues.”
Brisbane’s vacancy rate fell to 1.3% in May from 1.4% in April, according to SQM Research.
It is note the tightest of capital cities as Perth, Adelaide, Canberra, Darwin and Hobart all have a vacancy rate below 1.0%.
Melbourne’s vacancy rate fell to 3.7% in May from 4.0% in April.
Sydney dropped to 2.9% from 3.1%.