Melbourne rental vacancies swell

SQM Research has released rental vacancy data for the month of July, which recorded a 0.1% decline nationally but ballooning vacancies across Melbourne:

As shown in the next chart, the rental vacancy rate has hit a seven year high in Melbourne at 3.1%, whereas Sydney’s retraced to 3.6% but remains near record highs:

Commenting on the results, SQM Research managing director, Louis Christopher noted:

“Rental vacancy rates for most capital cities recorded a decline over the course of July. We are now observing a clear trend of reduced rental vacancies in outer suburban locations and regional locations around Australia. However, when looking into the numbers it is clear there are still very elevated levels of rental vacancies in the inner-city locations. We believe there has been a move towards outer regional living and away from high density areas. This very likely has been as a result of fears surrounding Coronavirus and the ability for many employees (particularly in the corporate sector) to work remotely.”

Not surprisingly, given the high vacancy rate, asking rents are plummeting across both Sydney and Melbourne, which has dragged down asking rents across the combined capital cities:

A two speed rental market has developed, with Sydney and Melbourne languishing as the immigration collapse coincides with ballooning supply:

Leith van Onselen
Latest posts by Leith van Onselen (see all)

Comments are hidden for Membership Subscribers only.