National residential rental vacancies fell in August, with Adelaide’s dropping to the third lowest in Australia.
According to data released by SQM Research, the national vacancy rate is 2.2%, down from 2.3% in July.
The vacancy rate was tightest in Hobart at a record low of just 0.4%, down from 0.5% in July. Hobart’s vacancy rate is the lowest of any capital city since 2005 when SQM began collecting data on the rental market.
Sydney (2%) and Melbourne (1.7%) both saw vacancies remain steady in August while all other cities recorded declines.
At 1.6%, Adelaide’s rental vacancy rate was third lowest after Hobart and Canberra (1%).
Darwin’s vacancy rate saw the biggest decline in August, dropping from 2.9% in July down to 2.5% after seven months of consecutive decline.
Brisbane’s vacancy rate dropped from 3.3% in July to 3.1% in August.
Post-mining boom Perth still has the highest vacancy rate of any capital city (4.6%) despite a slight increase in July when the vacancy rate was 4.9%.
“Overall the current rental market is a moderate landlord’s market. There is nothing in our numbers to suggest the market is about to be hit with oversupply,” said Louis Christopher, managing director of SQM Research.
“Dwelling completions should peak in early 2018 and given the pronounced year-on-year declines in building approvals, we believe rents will likely rise at a faster pace in 2018 than what has been recorded in 2017, thus far. We now have mounting concerns for significant rental shortages in 2019 in Sydney and Melbourne”.
Residential Vacancy Rates, August 2017
1. Hobart: 0.4%
2. Canberra: 1%
3. Adelaide: 1.6%
4. Melbourne: 1.7%
5. Sydney: 2%
6. Darwin: 2.5%
7. Brisbane: 3.1%
8. Perth: 4.6%