Find out what happened to the national vacancy rate in January
SQM Research has calculated the national residential rental vacancy rate decreased sightly in January, with all mainland capital cities recording falls in vacancies in January.
SQM Research noted that there are now less vacancies compared to last January – just prior to the first outbreak of Covid-19 in Australia.
But CBD rental vacancy rates in both Sydney and Melbourne remain elevated, despite recent falls.
Melbourne’s overall vacancy rate decreased from 4.7% in December 2020 to stand at 4.4%, the highest vacancy rate for any of the capitals.
This time last year, Melbourne’s vacancy rate was low at 2.1%.
Sydney also recorded a fall in vacancies over January with the rental vacancy rate sitting at 3.2%, assisted by sharp falls in the CBD rental market where vacancy rates are down to 6.2% after being as high as 16% in May last year.
“We remain of the view that there will not be a complete reversal of the sharp rise in rental vacancy rates experienced in these locations,” SQM’s Louis Christopher said.
“Demand for inner city property will remain affected by the closure of the international border as well as ongoing caution on future city lockdowns.
“This will mean 2021 will remain largely a tenant’s market in the inner cities but will also very much remain a landlord’s market for regional Australia.”
Landlords in capital city are seeking slightly higher asking rents, up 0.7% for both houses and units to $552 per week for houses and $413 per week for units.
Sydney had the highest increase of 3.2% in asking rents for houses and 2.2% in unit asking rents.
“This is the first significant rise for Sydney since February 2020,” SQM’s Louis Christopher who pointed out 12-month rents are still in the negative by 6.3% (houses) and 8.9% (units) respectively.
Melbourne continued to record declines in both house and unit asking rents over the month, falling by 0.1% and 0.4% respectively. Interestingly, rents slightly rose in the CBD for units, a sign that the worse could be over for CBD landlords.
Canberra recorded increases in house rents of 2.8% and unit rents increased by 2.7%. Perth house and unit rents also increased over the month.
