As shown above, the fall in vacancies over the month was driven by Melbourne (-0.2%), Sydney (-0.1%), Brisbane (-0.1%), Adelaide (-0.1%), and Canberra (-0.1%).

Over the year, the small rise in the vacancy rate nationally was driven by Perth (+0.8%) and Darwin (+2.2%), although Sydney (+0.1%) and Brisbane (+0.1%) also rose.

SQM also released its asking rents series to 12 April 2015, which revealed falling rents in Darwin, Perth and Canberra, which has pulled down rental growth to below inflation nationally:

According to SQM managing director, Louis Christopher:

“The national rental market continues to slow. It is coming up in our vacancy series and in our asking rents which are now rising at a slower rate than general inflation.” With the east coast market still been driven upwards, largely investor demand, it does make me wonder if investors are aware that it is increasingly a tenants market out there.”

It reads like a speculative bubble to me, whereby investors are disregarding rental returns and chasing capital gains, pushing prices upwards in the process.

unconventionaleconomist@hotmail.com

SQM sees weakening rental market