Property vacancy rates rise further

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.

Property vacancy rates rise further
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.


Subscribe to SQM Research’s weekly newsletter and peruse a our free research data at SQM Research


Subscribe & don’t miss a single episode of Michael Yardney’s podcast

Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.

Need help listening to Michael Yardney’s podcast from your phone or tablet?

We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.


Prefer to subscribe via email?

Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.

Louis Christopher


Louis is recognised as one of Australia’s most respected and impartial research property analyst. He has extensive knowledge and experience of property and is regularly quoted in the media on his insights and is director of SQM Research.

'Property vacancy rates rise further' have no comments

Be the first to comment this post!

Would you like to share your thoughts?

Your email address will not be published.