End of year vacancies rise

End of year vacancies rise

Australia’s national vacancy rate increased slightly in November, with further rises forecast for December due to seasonality, according to SQM Research.

The latest vacancy rate data shows the national vacancy rate at 2.2% – up from the 2.1% recorded in October 2017, but down from the 2.5% recorded at the same time last year.

Australia’s tightest market continues to be Hobart, sitting at the record low of 0.3% vacancy. At the other end of the spectrum, Perth saw vacancies rise from 4.4% to 4.5%; the highest rate of any capital city.

Several of Australia’s capital cities saw vacancy rate increases from October to November. Canberra, Perth, Darwin and Melbourne experienced marginal increases, while Sydney went from 1.8% to 2.1%.

SQM Research managing director, Louis Christopher, said that while home seekers in Hobart and Canberra are facing ongoing tight rental conditions and higher rents, the increase to Australia’s vacancy rate is “material”.

“Rises occurred across all regions in Sydney, however some of the larger month on month vacancy rises came from the Northern Beaches, Parramatta the Upper North Shore and especially the Hills District where vacancy rates rose sharply to 3.7%.”

Vacancy rates – November 2017

City November 2016 vacancies Vacancy rate October 2017 vacancies Vacancy rate November 2017 vacancies Vacancy rate
Adelaide 3267 1.8% 2495 1.4% 2501 1.4%
Perth 10,273 5.2% 8893 4.4% 9003 4.5%
Melbourne 10,581 2.0% 9390 1.7% 9872 1.8%
Brisbane 11,203 3.6% 10,714 3.4% 11,040 3.4%
Canberra 673 1.1% 507 0.8% 607 1.0%
Sydney 12,034 1.8% 12,435 1.8% 14,362 2.1%
Darwin 1012 3.5% 762 2.6% 848 2.8%
Hobart 158 0.6% 75 0.3% 81 0.3%
National 78,629 2.5% 67,781 2.1% 70,795 2.2%

Source: SQM Research

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