Perth vacancies rise further
SQM Research reported that nationally vacancy rates were slightly higher at 2.5 per cent in July, and slightly higher than one year ago when vacancy rates were 2.4 per cent.
Over the past year vacancy rates have tightened in Melbourne, Canberra, Hobart...and even Darwin!
Vacancy rates have been fairly flat for most of the past year in Sydney.
In Brisbane, rising inner city apartment vacancy rates are pushing the city average higher, up to 2.9 per cent in July.
Meanwhile in Perth, vacancy rates have hit a fresh cyclical high of 5.2 per cent, up from 5.0 per cent in June.
Perth's property market is beginning to look increasingly attractive from a price-earnings ratio perspective, but the time for investors to jump in may not be yet (after all, a rental property ideally needs a tenant, and asking rents have declined too over the past 12 months).
To make a bit more sense of the trends, the figures have been smoothed on a 4mMA basis below
It appears that the Darwin market may have turned a corner, while Hobart and Canberra have tightened significantly.
Going forward, the volume of apartments under construction in Melbourne may result in vacancy rates rising again in the Victorian capital.
According to SQM's Managing Director, Louis Christopher:
"Melbourne may start to record higher vacancies next year under the weight of completed apartment developments; but for now Melbourne remains a landlord's market.
Sydney is unlikely to record such a surge in vacancies as we believe the city's population expansion is going to absorb much of the new stock."
Louis is the new Waleed: he just nailed it!