Pete Wargent blogspot

PERSONAL COACH | PROPERTY BUYER | ANALYST

'Must-read, must-follow, one of the best analysts in Australia' - Stephen Koukoulas, ex-Senior Economics Adviser to Prime Minister Gillard.

'One of Australia's brightest financial minds, must-follow for accurate & in-depth analysis' - David Scutt, Markets & Economics Editor, Business Insider.

'I've been investing 40 years & still learn new concepts from Pete; one of the best commentators...and not just a theorist!' - Michael Yardney, Amazon #1 bestseller.

Tuesday, 17 July 2018

Sydney vacancy rate jumps

Sydney vacancies rising

The latest building activity figures confirmed that the record number of apartments under construction in Sydney is now morphing into a surge in completions.

June is always a seasonally soft month for rental markets, but the latest release from SQM Research recorded a vacancy rate jumping all the way to 2.8 per cent for Sydney.

That's well up from 2 per cent a year earlier.

Vacancies were very high in the Hills District at 4.9 per cent.

But the inner suburbs have by no means been immune as apartments complete across the city. 


There's a certain seasonal aspect to this.

Indeed, Australia's capitals are becoming more seasonal than ever with net overseas migration peaking in the warmer months, and hundreds of thousands of international students coming and going in recent years - but there's also high level of new supply for the city to deal with.

Around the traps

Melbourne's vacancy rate was just 1.6 per cent in the month of June 2018.

However, Melbourne now has more dwellings under construction than at any time in its history, as well as a range of transport, infrastructure, and commercial projects. 

Nationally, the vacancy rate declined from a year earlier from 2.5 per cent to 2.3 per cent, representing a decline from 78,314 to 75,757 vacancies. 

There were year-on-year declines in Perth, Adelaide, Canberra, and even Brisbane as more interstate migrants head north (as yet not fully recorded in official guesstimates, which have more lag than my Grandad's boiler).

You can find SQM's more detailed commentary in its always-excellent media release here.

---

The Real Estate Institute of New South Wales also released its vacancy rates figures, which told a similar story.

The Sydney-wide vacancy rate was 2.7 per cent, with year-on-year increases across the harbour city.


The Hunter Valley (ex-Newcastle) continued its multi-year tightening cycle with a vacancy rate of just 1.5 per cent.