Rental vacancies tighten in January

Rental vacancies tighten in January

Posted on Wednesday, February 20 2013 at 12:50 PM

Last year’s squeeze on rental accommodation has returned following a higher vacancy figure for December 2012, according to property analyst SQM Research.

report indicates the January 2013 vacancy rate fell nationally by 0.4 per cent
to 1.9 per cent.

balanced rental market is generally accepted as having a vacancy rate of three
per cent.

have remained relatively flat for the past two years and a spike in December
2012 in available accommodation appears to have been a seasonal effect,
according to Louis Christopher, managing director of SQM Research.

into account seasonality, vacancy rates have proven to be very steady over the
past two years now for the major capital cities.”

Research shows Melbourne as having the highest vacancy rate of all the capitals
at three per cent, with Perth having the tightest rate at 0.8 per cent.

the January 2013 vacancy figure indicates rental availability is slightly
better compared to the same time last year, SQM still categorises the rental
situation as tight with all capital cities, except Melbourne, recording a
vacancy rate of less than three per cent.

Research believes potential first homebuyers may now choose to leave the rental
market and begin looking to purchase given the start of a general recovery in
housing prices across many markets.

Gross, managing director of The National Property Research Company, is less
confident in the first homebuyer sector picking up.

still see a significant gap between mortgage repayments and rental when
comparing like for like property.”

believes the rental market is reasonably balanced and that first homebuyer
reaction will be a function of other factors.

government policies in particular have not been as effective in stimulating
that market as would have been hoped.” 

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