Vacancy rates drop everywhere, big city rents jump

As expected SQM Research's figures showed vacancy rates declining in August in every capital city, and rents jumping in the big cities. 

Hobart's vacancy rate fell to just 0.5 percent, while both Sydney (1.7 percent) and Melbourne tightened (1.9 percent) despite talk of an oversupply.

Asking rents for units were up by +4.5 percent in Melbourne and +4.0 percent over the year to August, suggesting that "landlords are in control of the market" according to SQM. 

Vacancy rates also declined in August in Brisbane, Adelaide, Perth, Darwin, and Canberra. 

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Smoothing the data on a 4mMA basis shows that Canberra's market has also tightened substantially, with asking rents soaring by +12 percent. 

 

The smoothed figures show that Darwin is on the mend, but Perth still has a 5 percent vacancy rate to chew through before rents can rise again. 

 

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According to Louis Christopher of SQM Research:

"Sydney is likely to remain a landlords' market, as the city's growing population creates demand for new stock".

 

Only in one sub-region of Sydney has SQM recorded an increase in advertised vacancies. 

 

PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and blogger.

His latest book is Four Green Houses and a Red Hotel.