Rental vacancies increased throughout 2008
SQM research have released an index on rental vacancies Australia wide. They show that vacancies increased throughout the whole of the 2008 calendar year.
Australia’s residential rental crisis appears to be easing with new data suggesting vacancy rates have been rising throughout 2008 for Australia’s Cities.
Australia’s nationwide city rental vacancy rate stood at 3.3% in December 2008, which is up from 2.1% recorded in December 2007. Melbourne has recorded the highest vacancy rate at 3.9% while Hobart recorded the tightest rental market, with a vacancy rate of just 1.1%.
Rental vacancies appear to be the tightest in the nation’s affordable suburbs. However, in the middle to upper end of the market place there is an increasing oversupply situation with a number of inner and top end suburbs recording vacancies above five per cent and in some cases, above 10 percent. This is particularly the case in Sydney where suburbs such as Vaucluse (11.4%) are now oversupplied.
SQM’s vacancy rates are based on monitored online rental listings, adjusted for false listings and properties that have been withdrawn from the market within the monitored period concerned. The available rental properties are then divided into the total number of established properties available for rent as provided by the Australian Bureau of Statistics.
The vacancy rates and full methodology are available for free on http://www.sqmresearch.com.au. The data is also freely available down to a regional and postcode level with a monthly back series to 2005.
According to Louis Christopher, SQM Research founder and Head of property with ratings house Adviser Edge:
“Notwithstanding a seasonal dip from November, vacancy rates for most postcodes around the country have been rising throughout 2008. We believe this phenomenon, which is most notable in inner urban and affluent areas, has been as a result of more and more vendors entering their properties into the rental market after failing to sell their properties.
It is also to do with the fact that rental demand has been flat to falling, particularly in the affluent postcodes where upper end rental accommodation is perceived to be a discretionary expense that can be cut back during lean times.
“This combined with the re-launch of the First Home Owner’s Grant, will mean that vacancy rates are likely to keep rising in 2009. And so, we believe that rents are likely to now flatten going forward for most cities, notwithstanding remaining pressure on the lower, affordable sections of the rental market.”