Vacancy rates fall to 4 year low across capital cities

SQM reported that Hobart’s vacancy rate slipped to just 0.3 of a percentage point while Melbourne fell to 1.6 per cent from 1.7 per cent in September. It has just 9,320 dwellings available for rent.

It is also found that Sydney’s vacancy rate was unchanged at 2.8 per cent with 19,454 properties available for rent.

Brisbane fell to 2.7 per cent from 2.9 per cent in September and is down from 3.4 per cent a year ago. Perth to 3.3 per cent from 3.6 per cent, well down from 4.4 per cent a year ago.

Canberra’s vacancy rate is just 0.6 of a percentage point and is unchanged. Adelaide, too, remained at a low level of 1.1 per cent, but Darwin rose to 3.8 per cent, from 3.6 per cent in September.

Managing director Louis Christopher said there are several factors impacting the results.

“Australia’s national vacancy rate is being driven lower by falling vacancies in many of Australia’s smaller cities,” he said.

“In Hobart, there is a severe shortage of rental accommodation with just 78 properties available to rent, and rents are rising quickly, with no slowdown in sight.

“In Canberra too, where many renters live, there are just 387 rental properties available, putting upward pressure on rents. Melbourne’s vacancy rate has remained at low levels over the year. In contrast, we are seeing a surplus of rental properties in Sydney and rental costs are falling, a trend we expect to continue into 2019.”

Rents

Capital city asking rents for houses rose 0.2 of a percentage point over the month to $553 a week. Units rose 0.2 of a percentage point to $438. Rents for houses rose 0.9 of a percentage point while units slipped to 0.2 of a percentage point.

The asking rent for a three-bedroom house in Sydney remains the highest nationwide at $712 a week and $512 a week for two-bedroom units, though costs are falling.

Unit rents were down 0.4 of a percentage point in Sydney over the month while asking house rents fell 0.2 of a percentage point.

Rents in Melbourne for houses rose 0.4 per cent over the month to $526 a week while asking rents for units fell 0.1 per cent to $406.