According to independent property research house SQM Research, rents are likely to rise moderately this year, contradicting recent reports which have predicted massive hikes.
The December National Vacancy Rate Index officially released today shows vacancies around the country remained flat during the final month of 2009. Year on year, vacancy rates in capital cities have risen modestly, with the market remaining relatively tight in most areas; particularly for affordable real estate.
SQM Research Managing Director Louis Christopher says the rise in available properties is due to many renters becoming first home buyers during the year.
“That said, not a lot of new housing stock was added in 2009 to meet demand. We saw an increase in new dwelling approvals last year, but the average lag from approval to build of about 18 months will keep the supply response fairly static in 2010.”
“Regardless, there is no evidence at the moment to suggest we will see significant increases in rents. Despite the recent aggressive forecasts, increases of between 3-5% in most areas are more likely, depending on what you’re renting and where” Christopher said.
“Any higher forecasts at a capital city level may well suggest questionable methodology.”
Please refer to our free vacancy rates for all vacancies for capital cities down to the postcode level.
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