Rental markets across Australia continue to slow under the effects of the COVID-19 epidemic, with vacancy rates at CBD locations increasing significantly in April, according to the latest figures from SQM Research.
During the month, the national vacancy rate rose to 2.6%, compared to 2% in March and 2.3% last year.
On a monthly basis, only Darwin experienced a drop in the vacancy rate. Sydney, on the other hand, had the highest rate at 3.9%, a significant jump from 2.9% in March.
Read also: Assessment of property risks during COVID-19
The table below shows the vacancy rate in each capital:
The locations of the capital's central business district have signaled a sharp increase in vacancy rates. The Sydney CBD, in particular, had the highest vacancy rate at 13.8%. Brisbane's CBD also reported a sharp increase to 11.3%.
Louis Christopher, managing director of SQM Research, said that the sudden increase in vacancies at CBD sites could be attributed to the economic impacts of the COVID-19 epidemic.
"The surge in vacancy rates in the major CBDs suggests a mass exodus of tenants during the months of March and April. This could be attributed to the significant loss of jobs in our CBD as well as the decline of international students. ", he said.
The table below shows the monthly and annual difference in vacancy rates in each city center of the capital:
[Christopher9002] Christopher warned that a sustained increase in vacant accommodation could lead to a deeper drop in rents.
"This will be good news for tenants but disaster for homeowners. There will also be economic consequences, with further significant declines in approvals of susceptible buildings, thereby risking a major depression in our residential construction sector as well as fairly obvious risks to house prices, "he said.
The rents requested in the capitals have already decreased by 1.3% for the houses.
Sydney, Melbourne and Perth recorded decreases in demanded rents for homes and units during the month, while Brisbane, Canberra and Hobart recorded decreases in demanded rents but minor increases in demanded rents.
On the other hand, Adelaide defied the trend and reported rent increases for homes and units.
The table below shows the weekly rents in each capital on May 12:
Main suburbs:
west wodonga
,
sunshine
,
north epping
,
melton
,
padbury
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