National residential vacancy rates continue to fall: SQM Research
Suburban vacancy rates continue to fall, according to new SQM Research data revealed Tuesday.
The Australian investment research house recorded a 0.2 per cent drop in the national residential rental vacancy rate over the month of April, falling to 1.9 per cent from 2.1 per cent in March.
Melbourne’s vacancy rate fell to 4.0 per cent in April from 4.4 per cent, while in Sydney it dropped to 3.1 per cent from 3.4 per cent.
In Adelaide, Canberra and Hobart, the vacancy rate remained below 1.0 per cent, while Brisbane’s fell to 1.4 per cent.
“Along with the smaller capitals, Brisbane’s vacancy rate has become extremely tight and so we are expecting a surge in rents for the city this year”, Christopher said.
Vacancy rates in Perth and Darwin saw the most significant drop over the year, with rates falling 1.3 per cent and 1.1 per cent, respectively.
Rents have also jumped in these smaller cities, a trend that SQM managing director Louis Christopher believes we could see continue given the recent commodities boom for iron ore and other base metals.
“Demand for rental accommodations is still outstripping supply, which is having the effect of boosting rents in many locations and unaffordable to lower income tenants”, Christopher said.
In some locations, including the Gold Coast and New South Wales’ North Coast, landlords are demanding huge rent hikes, with asking rents soaring 32 per cent for houses on the Gold Coast over the year.
This surge has occurred as people migrate out of the big capital cities and move to regional and warmer locations, as well as the number of occupiers per dwelling fall, the research revealed.
“People are also looking for larger properties as they work from home and not wishing to live together.”
In contrast, rates for Melbourne and Sydney CBDs remain elevated with the loss of international student tenants combined with apartment oversupply.
These were among the only areas recording rises in vacancy rates, excluding Sydney’s Liverpool.
