Australia\u2019s rental market is now facing a crisis as the supply of properties fail to keep up with the increasing demand.<\/p>\n
SQM Research\u2019s latest report found that the national vacancy rate fell to 1.2% in February, reaching a fresh 16-year low from January\u2019s 1.3%.<\/p>\n
The decline across most capital cities was subtle on a monthly basis, with Melbourne striking the biggest dip from 2.7% to 2.3%.<\/p>\n
The rate at which vacancy rates are declining are more apparent on an annual basis. For instance, Melbourne\u2019s vacancy levels dropped from 4.5% to 2.3%.<\/p>\n
The tightest rental market in February was Hobart, where vacancy rates remained at 0.3%.<\/p>\n
One key trend over the month was the revival of Melbourne and Sydney CBDs, which reported lower vacancy rates of 2.8% and 4.3%, respectively.<\/p>\n
SQM Research managing director Louis Christopher said further declines in these CBDs are expected as international borders reopen and return-to-office commences for some companies.<\/p>\n
\u201cThe new surge in international students and other overseas arrivals will continue to create shortages in our inner-city regions,\u201d he said.<\/p>\n
\u201cThis situation now represents a significant rental crisis across the country \u2014 the flooding may exacerbate the shortage of rental accommodation in NSW and Queensland in coming weeks.\u201d<\/p>\n
However, Mr Christopher said the market might loosen slightly as the seasonal tightness moderates by the end of April.<\/p>\n
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Meanwhile, asking rents maintained its uptrend, striking a 9.4% growth over the year to the second week of March.<\/p>\n
\u201cAs it stands, the current rent rises represent the largest increase since the 1970s and so there are major near terms ramifications for inflation,\u201d Mr Christopher said.<\/p>\n
\u201cAll the same, we can expect capital city rents to rise by over 10% in 2022.\u201d<\/p>\n
Brisbane houses reported the highest gains in rent over the period, increasing by 19.5%. This was followed by unit rents in Darwin<\/a> (17.3%) and house rents in Sydney (17.1%).<\/p>\n
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