CORONAVIRUS COVID-19 PANDEMICRESIDENTIAL PROPERTY

International students return gives hope to CBD rental market

Photo: Note Viriyarat (Australian Property Journal)
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RENTAL vacancy rates across the country rose marginally over September, remaining largely steady across the board.

According to SQM Research, the national residential rental vacancy rate hit 1.7% in September, up from 1.6% in August and below the same period in 2020’s 2.0%.

“Rental vacancy rates were little changed in September, and were generally favouring landlords except for the Sydney CBD and large parts of Melbourne,” said Louis Christopher, managing director of SQM.

This reflects are total of 59,345 vacant rentals across the country, up from 58,856 in the previous month and down from September 2020’s 70,396.

“As NSW and Victoria come out of lockdown and back to some sense of normality we expect some movement in the rental market,” added Christopher.

Sydney say a slightly increase in vacancies, from 2.6% in August to 2.7% in September and well below the pcp’s 3.5%.

While Melbourne remained steady over the month at a still elevated 3.5%, down slightly from 3.7% in the same period last year.

Brisbane was the only capital besides Sydney to record an increase in vacancies over September, with rates growing from 1.3% to 1.4% down from 2.0% in the pcp.

Meanwhile Adelaide, Canberra and Hobart remained unchanged at 0.6%. 0.8% and 0.5% respectively. All slightly down from September 2020 rates of 0.8%, 0.9% and 0.6%.

Perth and Darwin however both saw drops over September, with each falling from 0.7% to 0.6% and down from 0.9% and 0.7% for the year respectively.

“CBD locations may well improve for property owners as overseas students return to our shores. However, regional vacancy rates may also rise as longer term city dwellers seek a return to a larger choice of amenities, family and friends,” added Christopher.

National asking rents rose by 0.6% for houses to $536 per week in the month to 12 October, with units seeing an increase of 1.7% to $409 a week.

Capital city rents for houses saw a combined increase of 0.2% over the same period and increase of 10.2% for the year, with units rising by 0.2% for the month and 2.9% for the year.

Sydney was the only city to record a drop in house asking rents, which fell by 0.2% to $702.9 per week, a yearly increase of 14.9%. While units grew 0.4% to $466.8 per week, up 3.2% for the year.

In Melbourne house rents grew by 0.4% over the month to $524.6, a yearly increase of 1.8%, with units rising by 0.3% to $374 per week, the only city to see a yearly drop for units, with a 4.1% decrease.

Brisbane saw a monthly increase of 0.1% to $527.1 for houses, a yearly increase of 12.8%, with monthly increase of 0.3% to $397.3 for units, for a yearly increase of 5.4%.

Perth saw a monthly increase of 0.7% to $525.6 for houses, a yearly increase of 11.1%, with monthly increase of 0.4% to $399.5 for units, for a yearly increase of 10.3%.

Adelaide saw a monthly increase of 1.0% to $455.4 for houses, a yearly increase of 9.2%, with monthly drop of 0.8% to $338.5 for units, for a yearly increase of 7.4%.

Canberra saw a monthly increase of 1.6% to $724.4 for houses, a yearly increase of 16%, with monthly increase of 0.4% to $514.1 for units, for a yearly increase of 7.2%.

Darwin saw a monthly increase of 0.8% to $602.2 for houses, a yearly increase of 14.4%, with monthly increase of 0.2% to $462.9 for units, for a yearly increase of 25.5%.

While finally, Hobart saw a monthly increase of 3.1% to $487.2 for houses, a yearly increase of 7.2%, with monthly increase of 2.4% to $435 for units, for a yearly increase of 13.7%.

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