As a property investor it’s important to know what’s happening to the supply and demand ratio and vacancy rates around Australia
Figures released by SQM Research reveal that the level of vacancy rates remained slightly relatively the same on a national level during February 2013, recording a vacancy rate of 1.9% for the second month consecutively and coming to a national total of 52,351.
Year-on-year however, this has illustrated that vacancies may be starting to rise slightly, with the national figure being 0.2% higher than February 2012.
February 2013 revealed some slight changes for most of the capital cities, particularly in the case of Melbourne which recorded a 0.3% drop in vacancies month on month – coming to a total of 11,410 vacancies and a vacancy rate of 2.7%.
This is the lowest vacancy rate recorded for Melbourne for several months, however reveals no yearly change; thus SQM Research are yet to believe that the result for Melbourne is very telling at this stage.
Further to this, SQM Research’s new Weekly Rents Index has recorded a -0.8% year-on-year decrease in asking rental prices for Melbourne houses and only a 1.5% year-on-year increase in Melbourne units, revealing that the sentiment of landlords has for the most part not improved since February last year.
As a whole, the country appears to be have stagnated somewhat during February where the rental market is concerned.
However, SQM Research believes that as the sales market continues to recover, vacancy rates will begin to rise further as potential buyers will leave the rental market to purchase their first homes.
Louis Christopher, Managing Director of SQM Research says, “Residential rental vacancy rates remained unchanged once again at a rate that is illustrative of a land lord’s market. While there should be a move of renters turning themselves into first home buyers this year, it does not seem to be at this stage a major shift.”