Figures released by SQM Research reveal that the level of residential property rental vacancies dipped slightly during the month of September, recording at a vacancy rate of 2.1% and coming to a total of 58,977 vacancies nationwide.
In terms of the number of vacancies, this month’s figures reveal the third straight monthly decline on a national level.
Although September was an abnormal month as far as the property market goes, with a federal election and the AFL Grand Final interfering to a certain extent on the sales market, SQM Research does not believe that these events has any direct effect on the rental market, or are in any way responsible for September’s decrease in vacancies.
A closer in depth look at the figures however, reveals that each capital city is telling its own story where vacancies are concerned.
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Perth has recorded its first decline in vacancies for 2013, whilst Canberra’s vacancies are skyrocketing on a year-on-year basis. Brisbane is gradually creeping up whilst Adelaide stays relatively steady.
Hobart is now recording falls in vacancy rates while Melbourne is still recording elevated vacancies, however there is no longer an uptrend in rental listings. Darwin – although still without a doubt, extremely tight, is beginning to ease slightly where vacancies are concerned.
Sydney appears to have been declining over the past six months.
“Currently there is no one national trend in the rental market; rather the national market is very much segmented with each city recording completely different trends and results. However, with a vacancy rate of 2.1%, it does suggest that the rental market remains mildly in favour of landlords and would suggest rent increases would be running at close to the general inflation rate or just above it at this point in time.”
Nationally asking rents have been flat for the past 12 months, falling by just 0.7% for houses and rising by 1.5% for units.
SQM’s calculations of vacancies are based on online rental listings that have been advertised for three weeks or more compared to the total number of established rental properties. SQM considers this to be a superior methodology compared to using a potentially incomplete sample of agency surveys or merely relying on raw online listings advertised.
Please go to our methodology page below for more information on how SQM’s vacancies are compiled