The latest SQM Research stats show that rental vacancies in July rose to 0.7 per cent from 0.6 per cent in June. That’s a slight increase in vacant rental properties – but still well below what might be considered a healthy range.
The Real Estate Institute of Queensland considers a vacancy rate of between 2.5 per cent and 3.5 per cent to be a healthy rental market. Below that and it’s tight.
July saw vacancy rates in inner city Brisbane fall to below average levels at 2.2 per cent. Combined with falls in the Melbourne and Sydney CBD areas and we could be seeing some reversal of pandemic effects.
“This may be evidence of the rise of international arrivals requiring inner city accommodation,” says SQM.
What does it mean for asking rents? These are continuing to rise.
Brisbane houses now have a median asking rent of $620 per week, up 20 per cent over the past 12 months.
Brisbane units are now asking $454 per week, up 15 per cent over the past year.
So what happens next? There may be some signs in Sydney and Melbourne of easing rental conditions, but that may not extend to other markets just yet.
“With the falls in CBD rental vacancies rates to well below average, we have evidence that the rise in overseas arrivals is starting to put some additional demand pressure in certain pockets of the rental market. We will wait to see if the increased immigration demand creates pressure elsewhere,” says SQM Research Managing Director Louis Christopher.
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