Market/Finance News: Vacancy rate update

By the resi financial blog team, 28 May 2014

Vacancy rates in Australia

A record-high national vacancy rate could indicate that more people are choosing to use the best fixed home loan rates currently on offer in order to buy, rather than rent. 

The latest figures from SQM Research, released on May 19, highlight the country's vacancy rate, as well as trends in Australia's capital cities. 

The vacancy rate reached 2.3 per cent nationally in April, which is the highest result for this particular month recorded by SQM since the vacancy rate index began in 2005.

Increase in vacancy rate

All of Australia's cities felt an increase in their respective vacancy rates between March and April, according to SQM.

"With all capital cities recording monthly increases and all capital cities recording vacancy rates of 1.5 per cent and above - the rental market appears to be swinging in favour of tenants," SQM explained.

However, some capital cities held their ground strongly. The best performing city for landlords was Adelaide, with a 1.5 per cent vacancy rate, up by just 0.1 per cent from the previous month.

This was followed by Darwin, which recorded a vacancy rate of 1.6 per cent. Sydney recorded a vacancy rate of 1.7 per cent.

"With the national recovery in building approvals and completions, I can only surmise that the rental market is increasingly going to favour tenants over the next 12 months," explained Louis Christopher, managing director at SQM Research.

Those buying property for the first time are in a more comfortable position thanks to this news. While they can select from the best home loans for first time buyers, they may also wish to rent for a short period while they come up with a home deposit. 

Meanwhile, investors can continue to seek out properties that are located close to quality amenities to ensure their properties remain tenanted.

Categories: Home Loans, Property Investment