While property investors are interested in the prevailing interest-rate, the capital growth of their properties, it also keen to know what’s happening to rents and vacancy rates.
Following a number of years of sluggish rental growth, rents are starting to rise with all capital cities around Australia showed a tightening of their vacant vacancy rates, but this was in part due to seasonal factors.
The Sydney property market continues to tighten after a long period of low rental growth and high vacancies, but other than Darwin, it still has the highest vacancy rate of all the capital cities – 2.6% for houses and 4.2% for units.
Vacancy rates in both Brisbane and Perth continue to tighten, while in Canberra Hobart Brisbane Melbourne Adelaide the competition for the available accommodation by prospective tenants is lowering the vacancy rates.
Moving forward the surging first homebuyer market will reduce the demand from tenants and put extra pressure on vacancy rates and upward rental movements.
On the other hand, the dwindling supply of new apartments and subdued investor activity will decrease the supply of new rental accommodation to help balance the equation
Our rental markets
Our rental market remain soft over the past year as all capital cities recorded only steady or slightly higher rentals with the exception of house rentals in Sydney and Darwin.
Canberra clearly remains the most expensive capital for house rentals while Perth remains the most affordable capital city.
House rents fell over the month in Sydney and Melbourne but increased in Hobart and Canberra while remaining steady in the other capital cities.
Unit rents fell over the last month in Brisbane, Canberra and Darwin while the increased in Melbourne and was sitting in the other capital cities.
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Source of all data and graphics: Dr. Andrew Wilson – My Housing Market
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