This article is from the Australian Property Journal archive
THE rental market remains tight with the national vacancy rate steady at 2.3%, although Perth defied the trend with vacancies rising for the third month in a row to 4.1%, according to SQM Research.
The total number of residential vacancies totalled 70,493 in March, slightly above the 2.1% recorded in March 2015.
Perth recorded the highest vacancy rate across the country, of 4.1% based on 8,224 vacancies. Whereas vacancy rates in Sydney, Adelaide, Darwin and Hobart remained the same at 1.6%, 1.9%, 3.6% and 0.9% respectively.
Canberra recorded the largest monthly fall, with vacancies falling 0.2% to 1.1%. Melbourne also experience a monthly fall, down 0.1% to 1.9%.
Managing director Louis Christopher said overall national vacancy rates remain steady however there is contrast in the market place and some current misperceptions over areas of oversupply.
“Right now the data suggests the areas of oversupply are confined to Perth, Darwin and the Brisbane CBD. Other bodies have suggested Melbourne should be classified as oversupplied. On this point, our data suggests otherwise.
“Vacancies rates for Melbourne have actually been in a downtrend now since 2014 and are now below 2%.Even in localities well known for elevated vacancies, such as the CBD, Docklands and Southbank, our number suggests vacancies have actually been falling in these specific localities. They have now fallen to levels below their long term average and certainly below levels that we were publicly concerned about, but no longer are as concerned,” he added.
After being as high as 6.1% in 2014, SQM Research reports the Melbourne CBD is now recording a vacancy rate of 1.9%. Southbank was at 5.6% in March 2014. It is now at 3.7%. While Docklands was at 5.8% in March 2014. It is now 2.9%.
Australian Property Journal
