Canberra leads national rental vacancy decline: SQM

Residential vacancies declined modestly across Australia during August 2011, falling by 0.1% to a national vacancy rate of 1.8%.

SQM Research says it arises from a total of 46,923 vacancies across the capital cities.

Melbourne continues to have the highest vacancy rate of 2.8% for a second consecutive month.

Canberra has once again recorded the tightest vacancy rate of the capital cities –  falling by 0.1% to 0.6%.

Canberra had just 289 vacancies. Melbourne had 10,197 vacancies.

No capital cities recorded month-on-month growth in vacancies; however Melbourne, Adelaide and Hobart did not experience any declines.

Adelaide plateaued at 1.6% (2,311 vacancies) and Hobart at 1.9% (448).

Sydney experienced a monthly decline of 0.2% in vacancies falling to 1.4% (7,769), and 0.2% monthly declines were also recorded Perth at 1% (1,559) and Darwin 0.9% (215) respectively.

Perth was the capital city to experience the largest yearly decline.

The capital cities to experience the largest yearly increase in vacancies were Melbourne and Adelaide – both rising by 0.7% since August 2010.

"With 3% being considered the equilibrium – as the national figure stands, 1.8% still presents a continuing tight vacancy," SQM managing director Louis Christopher says.

“Vacancy rates throughout the course of this year have remained very steady.

“To date there is no significant trend of vendors, having failed in selling their properties, offering up for rent instead,” Christopher says.

"While no doubt some vendors are doing this, so far, it’s not a mass event.

"And so, the rental market remains largely a landlords market, for now,” he  says.