Vacancies 2.1pc
Rental vacancies fell from 72,333 in February to 70,877 in March 2019, for a decrease from 2.2 per cent to 2.1 per cent, according to SQM Research.
Vacancies have generally tightened in Australia as investor market share now hits a record low share of new mortgage activity on AFG's latest guidance.
Sydney, however, is pushing the national average higher.
In Sydney the rental vacancy rate ticked down a notch to 3.1 per cent or 21,942 vacancies in March.
However, this was still much higher than the 15,833 vacancies of a year earlier as off-the-plan apartments bought in Sydney years before continued to rain in.
In Hobart there were a mere 131 vacancies reported for March, but the monthly decrease was mainly due to Melbourne where vacancies fell to just 9,210 or 1.6 per cent.
Vacancy rates remained pretty tight in Canberra (0.9 per cent) and are increasingly so in Adelaide (1.1 per cent).
Brisbane vacancies ticked down a notch and have now continued to tighten quite significantly to 2.5 per cent from 3.2 per cent a year earlier as apartment construction has calmed.
You can click on the graphic below to expand a chart of vacancy rates plotted on a 6mMA basis (but not adjusted for seasonality) to show the latest trends:
You can click on the graphic below to expand a chart of vacancy rates plotted on a 6mMA basis (but not adjusted for seasonality) to show the latest trends:
Perth's vacancy rates to continued to plunge to 2.9 per cent from 4.1 per cent a year earlier.
The wrap
Overall the trend around the country has been for a gradual tightening in vacancies, except in Sydney which has for some time experienced abnormally high dwelling completions both in the inner city and on the outer suburban fringe.
Vacancies continued to rise in Sydney's Central Business District (3.9 per cent).
And although off their peaks, vacancies were still very high in Sydney's Hills District (5.7 per cent).
Vacancy rates are not only driven by the rate of construction and the volume of investors in the market, but also strength in the local economies, employment rates, and the confidence to form new households (which has quite likely been waning of late).
Vacancy rates are not only driven by the rate of construction and the volume of investors in the market, but also strength in the local economies, employment rates, and the confidence to form new households (which has quite likely been waning of late).
Kudos as usual to SQM Research for its very insightful data series.
