Figures released by SQM Research this week, reveal that the level of residential property rental vacancies increased again during the month of June, with vacancy rates rising by 0.1% to 2.2% and coming to a total of 63,320 nationwide.
This figure also represents a 0.2% increase when compared to June 2012, reflecting a gradual alleviation of the country’s recent rental crisis.
Of particular note is Melbourne’s June result, which has crept up closer to 3% again, after four consecutive months of vacancies recorded well under this figure.
With Darwin and Hobart the only two capital cities to experience monthly decreases in vacancies, the remainder of the country’s capital cities either stagnated or recorded increases during June 2013.
Canberra in particular recorded a 0.2% monthly rise and a staggering 0.9% yearly rise.
Also of interest is Perth’s result – recording a vacancy rate of 1.5% in June which represents a yearly increase of 0.8%. SQM Research regards Perth’s recent loosening in the rental market as a side effect of the slowdown in Australia’s commodities boom, as many of the nation’s mining towns are located in that part of the country.
“As stated with May’s result, it has become apparent that vacancy rates are now rising. Causations behind the rise vary from city to city. For example the rises in Melbourne and Canberra are as a direct result of rises in completions of new residential dwellings throughout 2012 and early 2013.
The rises in Perth appear to be more demand related. “The net result out of this is that rents will struggle to rise for the remainder of this year and 2014 could see zero rental growth as an average for the capital cities. Indeed, we have evidence rents are already falling in at least one city, being Canberra.”
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 for more information on how SQM’s vacancies are compiled.