SQM Research has released rental vacancies data for the month of October, which revealed that the vacancy rate nationally fell by 0.1% to 2.0%, with most capitals experiencing declines:
According to SQM Research:
SQM Research does expect vacancies to begin to rise in the lead up the Christmas as this normally occurs during this time of year.
Observing the figures year-on-year, vacancies in some cities of Australia are much higher than this time in 2012, particularly in Perth, Brisbane and Canberra. Sydney has appeared to have held steady, despite a swift increase in sales activity in this capital city, pointing further to indications that the recovery being experienced there has been predominantly motivated by investors, rather that first home buyers at this stage.
The city of Hobart is clearly recording lower vacancies than 12 months ago and is now getting to the point where there will be upward sustained pressure on rents as the market turns back into the favour of landlords.
Louis Christopher, Managing Director of SQM Research says, “Nationally it is the fourth straight month where rental vacancies have tightened though I note this same trend happened this time last year. Sydney is an interesting case. We know the sales market is very active and normally in most recoveries, vacancies rise as renters turn themselves into first home buyers. But Sydney is now recording a very tight vacancy rate of 1.5%. Its evidence that the First Home Buyers are indeed remaining renters for longer. If Sydney vacancies remain this low, that will put renewed upward pressure on rents again for next year.”