Rents to stall for 18 months
Rents will struggle to rise across the capitals for the remainder of the year and will stall completely in 2014, according to new figures from SQM Research.
According to managing director of SQM Research Louis Christopher, recent rental vacancy statistics are pointing to rents across the capitals not rising for the next 18 months.
According to the data, the level of residential property rental vacancies has risen by 0.1 per cent to 2.2 per cent in June, coming to a total of 63,320 nationwide.
The current rental vacancy rate is sitting 0.2 per cent higher than in June 2012, which shows a gradual alleviation of the country’s recent rental shortage.
“The net result is that rents will struggle to rise for the remainder of this year and 2014 could see zero rental growth as an average for the capital cities,” Mr Christopher said.
“Indeed, we have evidence rents are already falling in at least one city, being Canberra.”
Vacancies in Melbourne have once again crept closer to the pivotal three per cent mark, at which the market is at an equal level of supply and demand, after experiencing a tight rental market for four months.
“The rises in Melbourne and Canberra are as a direct result of rises in the completion of new residential dwellings throughout 2012 and early 2013,” Mr Christopher said.
Darwin and Hobart are the only two capital cities to experience monthly decreases in vacancies. The remainder of the country’s capital cities either stagnated or recorded increases during June 2013.