This article is from the Australian Property Journal archive
RESIDENTIAL vacancy rates have risen significantly in December, particularly in Melbourne where it is at a record high of 4.4%, according to SQM Research.
SQM Research reveals national vacancies rose by 0.5% to 2.4% to 61,490 properties, which is 0.2% higher than a year ago. No capital cities posted monthly declines in vacancies.
Managing director Louis Christopher said this spike in December’s national vacancy rates is seasonal, although he acknowledges the surge in listings does appear to be a bit steeper than in previous years.
Melbourne continues to lead the way with 16,007 vacancies and a vacancy rate of 4.4%.
In contrast Perth is now experiencing the tightest vacancy rate of the capital cities, undercutting Canberra by 0.1%, coming to a total of 1,565 vacancies and recording a vacancy rate of 1%.
“What is of particular concern is Melbourne’s seemingly ever increasing vacancy rate which has been recorded at a high 4.4% for the month of December, a figure that most definitely reflects an oversupply issue for the capital city.
“Over the course of 2011, a steady increase in vacancy rates has been recorded for Melbourne, peaking in December with 16,007 vacancies – an amount that goes beyond merely seasonal factors,” Christopher said.
Hobart continues to record the largest yearly growth, increasing by 1.1% to 559 vacancies (2.4%). On the other hand, Darwin has recorded the most substantial yearly falls, down by 1.2% to 405 vacancies (1.7%).
Sydney vacancies rose by 0.5% to 2.0% to 11,106 properties compared to 1.7% a year ago. Brisbane also recorded a 0.5% increase to 2.5% to 6,278 properties, however they are lower than a year ago (2.8%).
Adelaide’s vacancy rate increased to 1.9% to 2,731 properties.
Christopher predicts vacancies will fall in January.
“Melbourne is looking ominous and we are expecting rental declines for this capital city for 2012. Melbourne has definitely become a renter’s market and landlords can no longer be expected to extract higher rents in Melbourne.
“But as for majority of the rest of the country, it is still a landlord’s market and we are expecting rental increases overall to be within the 4-6% range and in some regions within Sydney – even higher, throughout the course of the year,” he concluded.
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