Vacancy rates on the rise
Vacancy rates on the rise
Posted on Wednesday, July 16 2014 at 2:17 PM
SQM Research has released figures revealing an increase in residential vacancy rates across the nation.
According to SQM, national
vacancies came in at 2.3 per cent in June – a rise of 0.1 per cent.
The vacancy rate for all
capital cities either rose or remained steady, except for Hobart, which experienced
a 0.2 per cent fall.
Perth’s
vacancy rate has risen dramatically from the June 2013 figure of 1.6 per cent,
to record a 2.3 per cent result for June this year.
Darwin
has similarly climbed in rental vacancies, doubling from a 0.8 per cent rate in
June 2013 to 1.6 per cent in June 2014.
Louis
Christopher, managing director at SQM Research, says a definite slowdown in the
nation’s rental market is occurring.
“At
this stage the market is increasingly favouring tenants across the country.”
Christopher
says vacancy rate increases are at their early phase in the cycle.
“While this is not yet a
rout for landlords, it certainly is at a stage where rents will unlikely rise
above inflation for the next 12 months.
“This
means that rental yields will continue to fall, thereby reducing the net cash
flows for new property investors in the marketplace.”
SQM
Research’s Asking
Rent’s Index has also revealed a monthly stagnation in the capital
city average asking rents with no change recorded month-on-month for houses,
and a 0.7 per cent decrease in asking rents for units.
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