Vacancy rate changes have proven to be a prime indicator of the health or otherwise of property markets during the pandemic period – and the latest data from SQM Research shows the resilience of most markets across Australia.
The national residential rental vacancy rate recorded a small decrease over the month from 2.6% in April to 2.5%, a remarkably strong figure in the current circumstances.
The vacancy rate reduced in four the eight capital cities – and six capital cities have vacancies between 1.2% and 2.5%. The strongest cities are Adelaide and Hobart, both at just 1.2%, while Canberra is close behind with a vacancy rate of 1.3%.
Sydney and Melbourne are the only cities to record a significant increase in their overall vacancy rates. Melbourne’s vacancy rate is only slightly above 3%, but Sydney has increased to 4% and its CBD now has a vacancy rate of 16%, according to SQM.
It says Sydney and Melbourne are recording declines in rents for both houses and units over the month, but rents have risen in Adelaide, Brisbane, Perth, Hobart and Darwin in the past month. Many of the nation’s key regional cities continue to have low vacancy rates, including Ballarat, Bendigo, Albury- Wodonga, Orange, Wagga Wagga, the Sunshine Coast and Mackay. Most of these regional centres have vacancies below 2%.