More rental properties on the market shifts power to tenants

WHILE rental vacancy rates have dropped marginally in the past month new figures reveal the market is tipping in favour of tenants.

WHILE rental vacancy rates have dropped marginally in the past month new figures reveal the market is tipping in favour of tenants.

The latest data from SQM Research shows the national vacancy rate is now 2.2 per cent.

SQM Research general manager Louis Christopher says that equates to 65,075 vacant properties.

“This result clearly reveals that last month’s jump (in vacancies) was indicative of a genuine increase in rental dwellings onto the market, and not merely seasonal spike,’’ he says.

The research reveals Canberra, Melbourne and Darwin were the only capital cities to record monthly drops in vacancies.

NEW HOME BUILDING LEVELS HEADING UP

PLANE CONVERTED INTO HOME

Mr Christopher says nationally vacancy rates appear to remained elevated which leads him to believe the market is starting to favour tenants.

Average capital city house rents are $528 and $416 for units.

Mr Christopher says landlords are finding it tough to get higher rents which could be because there have been more rental properties added to the market.

“Rental growth so far this year has been patchy as a result of the moderate increase in supply of available rental properties and I believe vacancy rates will continue to gradually rise over the course of 2014, ‘’ Mr Christopher says.

He says with big increases in building approvals he things the vacancy rates will continue to rise during the next two years.

“Overall it is going to be increasingly difficult for landlords to lift the rent for the foreseeable future.”

Melbourne had the highest vacancy rate of the capital cities at 2.4 per cent.

Vacancy rates in Perth, Brisbane and Canberra were 2.3 per cent.

Hobart was 1.8 per cent, Sydney 1.7 per cent and Adelaide 1.6 per cent.

Darwin has the lowest vacancy rate of 1.4 per cent.