16 Jun Apartment vacancy rates tighten across Australia
The good news kept coming this week for the apartment market with SQM Research announcing a fall in the national rental vacancy rate in May 2021.
The report details the vacancy rate for each capital city. It shows across greater Melbourne the vacancy rate fell from 4.0% in April 2021 to 3.7% in May 2021. This is a significant fall for one month and represents a net increase in the rental occupancy of 2,140 properties. For the same periods, Sydney fell from 3.1% to 2.9%.
The CBD’s of Melbourne and Sydney continue to be the slowest to recover, but the trend is positive with vacancy rates falling to 8.0% and 6.8% respectively in May 2021. At their peak, Melbourne CBD vacancy hit 9.4% in October 2020 and Sydney CBD vacancy rate was 14.8% in May 2020, so we have come a long way already.
The report confirmed a tight rental market remains in almost all regional areas around the country.
The trend of reducing vacancies is expected to continue for the balance of 2021. Hopefully this continues into 2022 and the CBD and inner city market can recover the recent fall in rents experienced over the last 12 months.