Lack of rents leads to lower vacancy rates

Lack of rental properties resulted in a decline in the national residential vacancy rate in October. The decline was caused by falling vacancies in many small towns as well as in Melbourne.

SQM Research reported that the national residential vacancy rate fell to 2% over the period, its lowest level since March 2014. This translates into a total of 67,350 vacant dwellings at across the country.

The declines recorded in each city may be small, but together they have largely contributed to the overall decline in rates. The Hobart vacancy rate fell to 0.3%. Melbourne's vacancy rate went from 1.7% in September to 1.6% in October, with 9,320 units available for rent. The vacancy rate in Sydney has not moved to 2.8% compared to September, with 19,454 properties available for rent.

In addition, Brisbane's vacancy rate fell from 2.9 per cent in September to 2.7 per cent. On a year-over-year basis, the Queensland capital saw a 3.4% decline. The Perth vacancy rate, meanwhile, fell to 3.3% from 3.6% and 4.4% last month and last year, respectively. The vacancy rate in Canberra remained unchanged from 0.6% in September, while Adelaide's vacancy rate remained at a low level of 1.1%. Darwin's vacancy rate, however, weathered the trend after rising 3.8% to 3.8% in September.

Louis Christopher, Managing Director of SQM Research, explains why markets are down.

"In Hobart, there is a serious shortage of rental housing, with only 78 rental properties, and rents are rising rapidly, with no slowdown in sight," he said. "In Canberra also, where many tenants live, there are only 387 rental properties available, putting upward pressure on rents. Melbourne's vacancy rate remained low during the year. On the other hand, we are seeing a surplus of rental properties in Sydney and rental costs are down, a trend that we expect to continue until 2019 ".

Rents charged in the capital increased by 0.2% during the month, to $ 553 per week, as of November 12, 2018. Similarly, rents charged for units increased by 0.2% for the month. to reach $ 438 per week. During the year, asking rents for houses increased by 0.9%, while asking rents for dwellings fell by 0.2%.

It should be noted that the rent charged for a three-bedroom home in Sydney is still the highest in the country: $ 712 per week and $ 512 per week for two-bedroom units, although # They should soon change. Rents charged in the capital of New South Wales fell 0.4% in the month, while rents demand fell by 0.2%.

In Melbourne, rents increased by 0.4 per cent during the month to $ 526 per week, while rents fell by 0.1 per cent to $ 406.

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