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What’s happening to Vacancy Rates?

Figures released by SQM Research  showed that the level of residential vacancies plateaued during the month of May, remaining at a vacancy rate of 1.8% and coming to a national total of 50,408 vacancies.

This figure represents a mere difference of 440 vacancies month-on-month.

Year-on-year however, vacancies have risen by 7,270 with the national vacancy rate increasing by 0.2% since May 2011.

This table shows what’s happening in your investment property market

Many of the capital cities stagnated during May, with Brisbane, Darwin and Hobart being the only cities to record a monthly change – dipping slightly (by 0.1%).

No vacancy rates increased for any of the capital cities month-on-month.

Darwin is now showing obvious signs of an extremely tight rental market, dropping again to 0.4% during May, coming to a total of only 100 vacancies.

Melbourne however, continues to sit on the opposite side of the spectrum, once again recording the highest vacancy rate of the capital cities at 3.1% and also the highest level of residential vacancies, coming to a total of 11,427.

Louis Christopher, Managing Director of SQM Research says “For many months now, vacancies across most of the country have remained very low, ensuring that competition is fierce between prospective tenants, particularly at the affordable end of the market. As we have continually stated, we see no relief on that front, other than in Melbourne where there is still many more dwellings coming onto the market this year.” 

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. 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.

If you want to understand the methodology on how SQM’s vacancies are compiled please click on this page: Methodology



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Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and his opinions are regularly featured in the media. Visit Metropole.com.au


'What’s happening to Vacancy Rates?' have 6 comments

  1. Avatar for Property Update

    June 28, 2012 @ 1:01 am opinder

    Thanks for the article Michael
    Now does this means one should not buy investment property
    in Melbourne instead start looking in other states.or again it is based on
    what areas of Melbourne we look into.
    Thanks in advance

    Reply

    • Avatar for Property Update

      June 28, 2012 @ 6:47 am Michael Yardney

      Opinder
      There are still some great investment opportunities in Melbourne – it means you have to be much, much more selective and buy the type of property with an element of scarcity.
      Avoid CBD and high rise blocks – steer clear of western and out er and newer suburbs

      Reply

  2. Avatar for Property Update

    June 28, 2012 @ 8:01 am Minh Nguyen

    Hi Michael

    What do you think of the property market in Bendigo? I hear that thrre is a land release program going on in Bendigo at the moment. There is also talk of a new hospital, regional airport etc.

    Thanks

    Reply

  3. Avatar for Property Update

    June 28, 2012 @ 9:20 am paul

    Melbourne is a basket case. Over the years the local gov has lost sight and continued to approve high rise apartments in CBD area.. with the local gov continuing to approve such developments there is no hope on the horizon. Good work Victoria!

    Reply

  4. Avatar for Property Update

    June 28, 2012 @ 10:36 am opinder

    Thanks Michael for the reply. It means I m going in right direction
    then. Much appreciated. Regards..

    Reply


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