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Vacancy rate rises to 1.3% and  House rents hit record levels in six capitals

By July 17, 2023No Comments

The national vacancy rate remains extremely low, but moved slightly higher in June, according to SQM Research.

Over the past six months, the vacancy rate has gradually increased:

* Jan = 1.0%

* Feb = 1.0%

* Mar = 1.1%

* Apr = 1.2%

* May = 1.2%

* Jun = 1.3% (see chart)

When the vacancy rate (which refers to the share of rental properties that are unoccupied) is below 2%, the market favours property investors, because it’s hard for tenants to find accommodation. As a result, rents tend to rise.

Between the June quarters of 2022 and 2023, the median house rent jumped 11.5% across the capital cities, according to Domain.

If the vacancy rate continues increasing, that will take pressure out of the rental market.

Many property investors enjoyed massive rental gains during the just-completed financial year, according to Domain.

Between the June quarters of 2022 and 2023, the median house rent jumped 11.5%.

While house rents declined in Hobart and Canberra, they increased in every other capital city.

House rents are now at record-high levels in Sydney, Melbourne, Brisbane, Perth, Adelaide and Darwin.

“With the high demand and tightening supply, Australia’s rental market has locked in favor of landlords, putting tenants in difficult positions when faced with rent hikes,” according to Domain.

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