SYDNEY RESIDENTIAL RENTAL VACANCY REACHES HIGHEST POINT SINCE 2005
Sydney residential rental vacancy reaches highest point since 2005, new research says
New data from SQM has shown Sydney's residential rental vacancy rate reached 3.5 per cent during June, its highest point in 14 years.
Sydney could have a 4 per cent residential rental vacancy rate by the end of the year based on current trends, says research group SQM.
New research from the company shows the rate for the city increased by 0.2 per cent during June to reach 3.5 per cent - its highest rate since 2005.
SQM CEO Louis Christopher said the trajectory went beyond the expected June increase.
"The increase in rental vacancies in June tends to be a seasonal rise for the start of winter however Sydney’s increases goes beyond seasonal factors and so our expectation remains that Sydney will reach a 4 per cent vacancy rate before 2019 is completed," he said.
At a glance:
New research from SQM shows Sydney has the highest vacancy rates in the country at 3.5 per cent, with Perth’s vacancy rate not far behind at 3.2.
REINSW June 2019 Vacancy Rate report revealed no change in vacancy rates across wider Sydney, with only minor changes in Inner (up 0.3 per cent to 3.4 per cent), Middle (up 0.1 per cent to 3.4 per cent) and Outer Sydney (down 0.1 per cent to 3.5 per cent).
The total number of vacancies Australia-wide is now at 78,690 vacant residential properties, an increase of 3,597 over the month.
SQM's monthly report preceded the Real Estate Insitute of NSW June 2019 Vacancy Rate report, which revealed no change in vacancy rates across wider Sydney, with only minor changes in Inner (up 0.3 per cent to 3.4 per cent), Middle (up 0.1 per cent to 3.4 per cent) and Outer Sydney (down 0.1 per cent to 3.5 per cent).
REINSW CEO Tim McKibbin said new stock remained integral to fluctuations in the vacancy rate.
“There has been an increase in stock across Sydney over the last 12 months, which has pushed the vacancy rate higher,” he said.
“It will be interesting to monitor the new stock coming to market during the next 12 months and its effect on the vacancy rate.”
According to SQM, nearly all capital cities recorded minor increases ranging from 0.1 per cent to 0.2 per cent over the month of June, with Darwin the only capital city to record a decrease of 0.2 per cent to 3.1 per cent in vacancy rates.
Perth had the second-highest residential rental vacancy rate behind Sydney at 3.2 per cent, while Melbourne's rate increased to 2 per cent.
The total number of vacancies Australia-wide is now at 78,690 vacant residential properties, an increase of 3,597 over the month and up 2,933 dwellings over the past 12 months.
Mr Christopher said Brisbane, Adelaide and Hobart’s rental market is still in favour of landlords, despite vacancies rising in June.
"These cities have also recorded moderate increases in asking rents for the month and continue to record muted dwelling completions," he said.