As readers know, Sydney (3.5%) and Melbourne (3.8%) are currently experiencing high rental vacancy rates:
SQM Research has updated its new weekly rental listings data, which shows the dramatic lift in apartment listings across both Sydney and Melbourne.
You can see from the next chart that detached house rental listings in Sydney are fairly tight (7,848), whereas there were a whopping 22,246 units available for rent as at 25 October:
In Melbourne, there are currently 8,175 detached houses available for rents versus a whopping 21,889 units available:
As noted in my recent report, NSW is facing a bigger supply glut with 42,000 net dwelling additions versus a 2,000 population decline forecast in 2021 and 34,000 net dwelling additions versus 7,000 population increase forecast in 2022:
Victoria also faces a growing supply glut with 51,000 net dwelling additions versus 13,000 population growth forecast in 2021 and 48,000 net dwelling additions versus 30,000 population increase forecast in 2022:
Thus, we expect the collapse in immigration and international student numbers to drive vacancies up further.
