The winter frost has set tight on Hobart and it’s vacancy rates

Figures released by SQM Research this week have revealed that the number of national residential vacancies remained tight during May, recording a vacancy rate of 2.4%, and 74,024 vacancies.

Year-on-year results demonstrate that national vacancy rates remain unchanged from this time last year.

Darwin recorded the largest monthly fall, with vacancies decreasing by 0.5 percentage points during the month of May. 

Canberra also experienced moderate monthly falls with vacancy rates down 0.3 percentage points.

Vacancies fell 0.1% in Melbourne, Brisbane, Sydney and Hobart during May 2016.

In contrast, Perth recorded a monthly rise, with vacancies increasing by 0.2 percentage points during the month of May.

Perth continues to record an alarming number of vacancies, particularly when one considers the amount recorded this time last year (May 2015), with vacancies climbing a total 1.3%.

Asking rents

Notably, according to SQM Research, Darwin has recorded ongoing falls in asking rents of 10.4% for houses and 12.2% for units over the past 12 months.

Yearly falls have also been recorded in Perth, with asking rents down 9.6% for houses and a considerable 10.0% for units.   

Hobart continues to record the most affordable rental accommodation with rents for houses at just $347 a week, and units averaging $277 a week. 

Rental vacancies held steady during the month, though rises were recorded in regional townships and cities with mining exposure.

Perth, for example, continues to record higher vacancies.

National Rents were slightly weaker this month with a 12 month average change that is mirroring the CPI index.

Going forward we do not expect any resurgence in rents for the foreseeable future, barring some cities such as Hobart, which we do expect higher rental growth rates due to a falling trend in vacancies.

Source: www.sqmresearch.com.au

 

Key Points 

• Nationally, vacancies remained tight during May 2016, recording a rate of 2.4%, based on 74,024 vacancies.
• Perth recorded the highest vacancy rate in May 2016 of 4.7% based on 9563 vacancies.
• Year-on-year, vacancy rates decreased in most capital cities, excluding Perth where vacancies increased and also Adelaide where vacancies remained the same.
• Hobart recorded the lowest vacancy rate during May 2016 – 0.8% based on 231 vacancies.
• Over the past 12 months, Darwin has recorded ongoing falls in asking rents of 10.4% for houses and 12.2% for units.