It’s that time of the property cycle where property prices are flat, but rents are rising.
While the overall number of properties for rent remains low and fewer people in the market buying properties, there is only one way for rents to move and that is up!
Figures released last week by SQM Research reveal that residential vacancies dipped slightly during the month of October, falling by 0.1% to 1.8% and coming to a total of 45,896 vacancies nationally.
SQM Research reports that national vacancies have been hovering around these figures for quite a few months and October has not proven to be any different as far as the rental market is concerned.
Where the capital cities are concerned, this month’s figures have shown thatMelbourne is leading the way in terms of vacancies, remaining at equilibrium with a vacancy rate of 3% and 10,956 vacancies.
Canberra continues to experience the tightest vacancy rate at 0.7% (302 vacancies) but is joined this month by Perth, which dropped 0.2% during October to 0.7% as well – coming to a total of 1,119 vacancies.
The managing Director of SQM Research, Louis Christopher says, “For the meantime, we do not see any light at the end of the tunnel where the rental market is concerned. The trends remain the same with no change in sight.”
SQM Research’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. They consider this to be a superior methodology compared to using a potentially incomplete sample of agency surveys or merely relying on raw listings advertised.
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