As shown above, most jurisdictions recorded either no change or a small rise in rental vacancy rates in October.

Clearly, the commodities bust continues to weigh heavily on both Darwin and Perth, with vacancy rates each jumping by 1.4% over the year, and both jurisdictions tracking well above the 3% threshold.

By contrast, the bubble epicentres of Sydney (1.6% – no change YoY) and Melbourne (2.4% – down 0.1% YoY) remain relatively tight, as do Adelaide (1.9% – up 0.4% YoY), Canberra (2.1% – up 0.3% YoY), and Hobart (1.1% – down 0.2% YoY).

SQM Research also released asking rents data for the week ended 12 November 2015, which again recorded sharp falls in rents in Darwin and Perth, which have held down asking rents nationally:

According to SQM Research’s managing director, Louis Christopher:

“There is a sharp contrast in the national rental market at this point in time. Clearly, vacancies have been soaring in Perth and Darwin, while our east coast capital cities have generally been stable. This is just one indicator on how the mining downturn has effected the economy. Clearly, not everywhere has been effected, but those cities and townships that do have exposure have been hit hard.”

The big surprise above is Melbourne, where asking rents have jumped 4.0% year-on-year for houses.

I doubt it will last long, however, with Victorian (read Melbourne) population growth falling just as dwelling construction is undergoing an unprecedented boom:

Then again, all those foreign investors could be keeping their properties vacant.

unconventionaleconomist@hotmail.com

Australia’s two speed rental market