Fresh Stocks May Push Vacancy Rates Higher

In an article for the website Property Update, Louis Christopher sheds light on the increasing vacancy rate in the residential sector all across Australia. The nation registered a 2.3% vacancy rate in the month of April, which is 0.2% more than the rate posted in the month of February. Barring Hobart, where the vacancy rate has remained constant, each capital city has recorded a hike.

Sydney rises in contrast to the nation

While the asking rent has come down sharply in Perth, Canberra and Darwin (the trend being most manifest in Darwin, which has registered a fall of 14.5% in asking rents of houses and 6.3% in asking rents of units), Sydney is enjoying a hike in both prices. Over the last year, its houses have shot up by 3.6% in terms of rental rate while units have risen by 1.1%.

Rental returns to remain weak

Christopher thinks that the rental market is likely to remain soft in months to come and performances like the one Sydney has posted will be exceptions and not the norm. A mining bust will hit Darwin and Perth hardest where it hurts.

You can read the original article here.

Sydney has turned out to be a phenomenon which every growth cycle waits for. It has shot past the expectations of even the most optimistic of people. Vacancy rates have posted some crucial questions for the “rental yield” barometer, but a place that is redefining the rules of capital growth should not be too bothered about the issue.

The story of Inner, Middle and Outer Sydney

Even so, Inner Sydney has hordes of people clamouring for rental homes and consequently, their availability has come down from 1.9% to 1.7%. Vacancies in middle Sydney have also dropped from 2.3% to 2.1%. Outer Sydney has faced a hike of 0.3%, coming up to 2.0% from 1.7%.  With a robust input of stocks expected in coming months, vacancy rates might just shoot up all across Sydney.