'Landlord's market' remains as rentals tighten

by Adam Smith22 Feb 2012

Vacancy rates have returned to previous levels after a surge to end last year.

SQM Research has indicated that vacancies for January fell from 2.4% to 1.8%. While the company said this would usually be considered a substantial decline, the fall in vacancies has brought the market back to pre-Chrismas levels after a surge in December.

Though vacancies have wound back, SQM said the number was slightly higher than in November, and the numbers could indicate a trend toward a looser rental market.

Nevertheless, SQM Research managing director Louis Christopher said the rental market remains tight overall.

"Overall it is still a landlord's market for most parts of the country, with the exception of Melbourne. Perth vacancies appear to be quickly disappearing and I would suggest if vacancies persist at under 1%, then this will translate to accelerated rent hikes in that city of 2012," he said.

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No 'light at the end of the tunnel' for vacancies