Vacancies tighten
Vacancy rates continued to declined in November, down to just 1.5 per cent, well below the 2.1 per cent seen a year earlier.
Brisbane tightened to 1.3 per cent, and for the first time we now have five capital cities with vacancy rates under 1 per cent.
Hobart had fewer than 100 rental vacancies, for a vacancy rate of just 0.3 per cent.
The longer term trend shows that Sydney and Melbourne still have relatively higher vacancy rates, driven by the CBDs, which recorded vacancy rates of 6.9 per cent and 7.2 per cent respectively.
Many holiday locations are expected to have the 'zero vacancies' signs out over the Christmas period, according to SQM Research.
With more Aussies than ever before likely to opt for 'stay-cations' this year, there could well be a chronic shortage of properties available for rent over the next few months.
The incremental shift in favour of tenancy laws in favour of tenants over landlords, and changes to financing requirements for property investors, have also added to the tightening market.
Asking rents for houses surged 14.1 per cent nationally over the year, and for units rents were up 9.1 per cent, according to SQM, so investors will likey be more active in 2022.
2021 saw a booming demand for larger properties, however, SQM's Louis Christopher anticipates a shift towards units next year, as affordability bites.
