Limited Rental Vacancies Lead to Increased Rent Prices

Limited Rental Vacancies Lead to Increased Rent Prices

According to data revealed by SQM Research, the national residential rental vacancy rate for July 2021 has remained low, at just 1.7%.  

However, rents have surged for another month across most capital cities and regions. The national combined week rent stands at $508 per week. This is an increase of 1.3% for the 30 days leading to August 12, and an increase of 13.7% over the last 12 months.

Vacancy Rates

The total number of vacancies across Australia stands at just 61,313 – the entire population of regional Queensland town, Rockhampton, at the time of the 2016 Census.

Melbourne’s vacancy rate grew 0.1%, to 3.6% in July, while Sydney’s vacancy rate dropped 0.1% to 2.7%. Brisbane, Canberra and Perth maintained a steady rate, while Adelaide, Darwin and Hobart maintained a below 1% vacancy rate

Vacancy rates rose across the Sydney CBD, to 6.1% - which may be the effect of the long lockdown gripping New South Wales presently. Rates fell across Melbourne CBD to 5.7%. 

Rents

Across the month to August 2021 national rents rose to 1.3% for houses, to $526 per week, while units rose by 0.5% to $420 per week. It is believed that the national rise has been driven by increases in regional centres, rather than in City centres. SQM Research states that they believe lockdowns and restrictions across capital cities may be triggering a new wave of tree-changers.

Capital City Rents grew by 0.5% for houses in the last month and are up by a total of 8% in the past year. Rent for units was stable over the past 30 days have increased by just 0.7% in the last 12 months. Rents for houses in some cities have recorded immense increases, with Brisbane’s rent growing by 11.2%, Perth by 12.9% and Darwin by 25.3%.

SQM Research’s Managing Director, Louis Christopher:

It is likely that these increases across the board in regional and city areas are due to lockdowns continuing. This is likely caused by the urge for landlords to take charge over their properties by utilising them in new ways, offering them through Airbnb and Stayz rather than offering long term rent as was done before this pandemic.

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