Vacancies remain tight nationally
SQM Research reported that nationally vacancy rates remain tight at 2.4 per cent, or a total of 72,024 vacancies.
In Sydney rental vacancy rates have tightened over the past year from 1.8 per cent to 1.6 per cent, although some areas have looming tower blocks to absorb, perhaps most notably Parramatta.
In Melbourne vacancy rates have tightened from 2.4 per cent to 1.9 per cent over the past year, defying predictions of an oversupply with population growth positively steaming along in the Victorian capital.
Canberra has seen rental vacancy rates tighten sharply of late to just 1.1 per cent in May, while the biggest monthly tightening was seen in Darwin, where vacancy rates dipped from 3.4 per cent to 2.9 per cent.
Brisbane saw vacancy rates tighten a notch in May from 2.8 per cent to 2.7 per cent.
Perth hasn't turned the corner yet on this metric - despite building approvals having experienced a long, sweeping downtrend - notching the highest vacancy rate in May of 4.7 per cent (up from 3.4 per cent a year ago).
Hobart has comfortably been the tightest capital city rental market, notching up five months on the bounce at under 1 per cent.
Monthly data is always prone to jump around a bit, but smoothing the figures on a 4mMA basis below shows which markets are faring best, and which are struggling.
After a decade of stagnation, Hobart is now an ultra-tight rental market and rents have been rising accordingly.
Meanwhile Perth is experiencing the opposite dynamic, with median house asking rents down by 9.6 per cent from one year ago.
Asking rents for houses are also down year-on-year in Darwin by 10.4 per cent.
SQM Research records median asking rents for apartments as having increased over the past year in Sydney (+5.4 per cent) and Melbourne (+3.8 per cent).
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