New figures by SQM Research show a drop in vacancies in Melbourne’s residential market, with a resulting increase in asking rents, while the national market remains largely stable.
SQM’s rental report points to a nationwide reduction in residential vacancies, with March figures showing a further decrease—0.1 percentage points—to deliver a 2.0 per cent vacancy rate across the country (57,964 vacancies).
The report states that nationwide vacancies have also dropped 0.1 percentage points year on year, in a shift from considerably looser vacancies, compared with corresponding periods, in recent months.
It’s Melbourne that proved notable, with its tightening rental market. Its vacancy rate fell to 2.1 per cent, a figure that was last recorded in September 2010. Melbourne also has both the largest monthly decline (0.3 percentage points) and yearly decline (0.5 percentage points).
Asking rents in Melbourne are up on a monthly, quarterly, yearly and three-year basis. The report points to a strengthening in Melbourne’s rental market following a period of higher vacancy rates than other capital cities across Australia.
Click here for the full report
However, SQM also says Melbourne’s CBD remains high in terms of vacancy rates (as high as 4.9 per cent). SQM believes CBD vacancy rates are set to rise from already high levels moving into 2015–16, acknowledging a large surge in dwelling approvals.