Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Tuesday, 19 January 2016

SQM: Seasonal increase in vacancies

SQM Research reported that vacancy rates rose in December, as they usually do.

Since vacancy rates do typically rise in the month of December, the year-on-year on figures are the ones to watch here. 

Vacancy rates have tightened in Hobart and Melbourne over the year, and have been unchanged for a year in Sydney and Canberra.

Brisbane vacancy rates haven't moved a great deal, but I do expect to see them move higher over the next year as more apartment projects are completed, particularly around suburbs such as Newstead and South Brisbane. 

Darwin vacancy rates jumped to 4.2 per cent, while Perth is not far behind, suggesting that the recovery stage for the Perth market remains some way off.

In theory the crackdown on investor lending could result in rental growth returning over time.

Indeed, the asking rents data showed solid year-on-year increases for Sydney and Melbourne, but sharp declines in Perth and Darwin.