Brisbane’s residential rental vacancy rate fell for the fifth consecutive month in May, representing good news for property investors in the Queensland capital.
Data from SQM Research showed the vacancy rate fell to 2.9 per cent in May, down from 3 per cent in April and 3.5 per cent in May 2017.
SQM Research managing director Louis Christopher said the trend indicates the worst is over for Brisbane property investors.
“Even the Brisbane CBD is now recording consistent decline in vacancies. We believe that a rise in interstate migration is lifting population growth rates in Brisbane plus the peak in unit completions is creating this turnaround in the rental market,” he said.
With vacancies falling in Brisbane, rents rose in the month to 12 June by 0.8 per cent to $450 a week for houses and 0.4 per cent to $369 a week for units.
Perth’s vacancy rate remained steady at 4.1 per cent in May, but was down from 5.1 per cent a year earlier, with the city experiencing an easing in the oversupply of rental properties.
Sydney’s vacancy rate rose to 2.5 per cent in May from 2.3 per cent in April and 1.7 per cent in May 2017, while Melbourne’s vacancy rate increased from 1.3 per cent in April to 1.4 per cent in May, steady with the rate a year earlier.
The asking rent for a three-bedroom house in Sydney was the highest in the country at $715 a week, however, rents fell 1.6 per cent over the month to 12 June, with the upward trend in the vacancy rate easing pricing pressures.
Asking unit rents in Sydney stood at $523, down by 0.5 per cent over the month to 12 June.
Capital city asking rents for houses fell over the month to 12 June by 0.5 per cent to $551 a week, while unit asking rents dropped by 0.2 per cent to $444. Over the year, asking house rents rose just 0.4 per cent, while unit asking rents increased slightly by 0.9 per cent.