Australia’s rental market tightest since 2012
SQM Research has released its rental vacancy report for May, which reports a national rental vacancy rate of only 1.8% – the lowest level of vacancies since October 2012.
Rental vacancies are zipped tight everywhere except Melbourne and Sydney, which have been hit hardest by the loss of international students, as illustrated clearly in the table below.
Rental vacancies are tight everywhere outside of Melbourne and Sydney.
According to SQM Managing Director Louis Christopher, rental vacancy rates have fallen across the board, which has driven rents higher:
“Rental vacancy rates have fallen across the board in May, driving rents higher, especially in regional locations. This trend is likely to remain through the second half of the year, given the fierce competition for rental accommodation in many areas. We are still seeing falling vacancies everywhere from Victoria’s Mornington Peninsula, the Gold Coast, right through to inland areas like the Murray Regions of NSW and South Australia to outback Northern Territory, along with Darwin, which is having the effect of boosting rents as tenants compete for rental homes”.
The biggest contrast is seen across the three major east coast cities – Sydney, Melbourne and Brisbane. Brisbane’s rental vacancy rate has shrunk while Melbourne’s and Sydney’s is elevated:
risbane’s rental vacancies have diverged sharply from Melbourne’s and Sydney’s.
SQM’s rental vacancy data accords with CoreLogic’s latest rental results, which shows strong rental growth outside of Sydney and Melbourne, alongside very strong rental growth nationally: