International students drive down CBD vacancies, rents up 25pc

RESIDENTIAL PROPERTY

NATIONAL vacancy rates fell back down to 1% over January, while rents were up another 2.4% over the last 30 days, providing no relief for renters.

According to the latest figures from SQM Research, total rental vacancies across the country are at 31,592 down from 39,568 in December.

With Sydney, Melbourne, Perth, Brisbane and Canberra all recording declines either falling back to their previous lows or just ahead of them.

“We are expecting a further tightening in rental vacancy rates over the month of February based on...

Louis Christopher,  Managing director of SQM Research.

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“We have previously warned that the months of February and March will be the most difficult time for tenants in the national rental market in...

Sydney’s rate fell from 1.8% to 1.3%, Melbourne from 1.7% to 1.2%, Perth from 1.1% to 0.8%, Perth from 0.5% to 0.4%, Adelaide from...

While according to REINSW Vacancy Rate Survey for January 2023, vacancy rates in Sydney hit their lowest level since November 2013, dropping 0.3% to 1.5%.

Rates across the Sydney CBD, Melbourne CBD and Brisbane CBD also decreased across the month, as international students push up demand, falling a respective 3.1%, 2.7% and 1.4% respectively.

Meanwhile capital city asking rents rose another 2.4% over the 30 days to 12 February, for a 12 month increase of 24.7%. With national rents rising 1.0% for the month and 17.4% for the year.

Canberra and Hobart were the only capital cities to see declines in asking rents, dropping 1.3% to $659/week and 2.9% to $519/week respectively.

Melbourne recorded the biggest increase, up 2.7% to $549/week, with asking rents still highest in Sydney after a 2.5% increase to $744/week.

Brisbane saw a 1.4% increase to $594/week, Perth up 1.3% to $586/week, Adelaide up 0.2% to $514/week and Darwin up 2.7% to $574/week.

“The ongoing surge in rents is pushing up rental yields, especially with falling prices. I believe ‘would-be’ investors will be...

“However, if the cash rate rises above 4% it is likely home buyers including investors will largely stay away from the...

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