Vacancy Rates Remain Low

National vacancy rates have risen slightly, hitting 1.3% in June.

This is up from 1.2% in May, with the lowest vacancy rate just 0.5% in Darwin and 0.6% in Hobart.

SQM Research data shows that all capital cities have vacancy rates well below the 3% considered to represent a balanced market.

Both Perth and Adelaide are 0.8%, Brisbane is 0.9%, Canberra, 1.5%, Sydney, 1.6% and Melbourne, 1.8%.

Vacancy rates rose in Sydney, Melbourne and Perth during June and remain the same in all the other capital cities.

SQM Managing Director Louis Christopher says the figures show many tenants are still experiencing rental stress.

He says the marginal increase in vacancies nationally should not be interpreted as a market turnaround.

“Most regions still show signs of stress, and the recent spike in dwelling approvals needs to translate into physical supply before rental conditions meaningfully improve,” he says.

“June’s figures suggest the beginning of a seasonal rebalancing in some regions. However, we are far from a renter’s market, especially in cities like Darwin and Hobart, where vacancy rates are critically low.”