The Australian residential vacancy rate back in December 2019 was a reasonable 2.5%, and the property markets were riding high.
Fast forward 12 months into a different world.
Predictions were for record vacancies as students couldn’t come, a flood of Airbnb properties would hit the market for long term rental as there were no overseas tourists or sporting events, and as people became unemployed, they would have to depart their rental property.
Well, while we have seen the overall Australian rental market remaining solid, there are areas where we do see record vacancies. And there is a common theme between these areas.
Yet some areas are seeing NO vacancy at all. There is very little available to rent.
Also, furnished apartments normally attract a premium rent for obvious reasons. They are the natural habitat for people needing a shorter term stay of 3-12 months while working interstate, travelling or transitioning homes.
A lot of furnished apartments did flood the market from Airbnb owners when travel was restricted.
But the number of people needing short term rental accommodation has dropped significantly.
These mostly remain empty, unless the owners decided to put the furniture into storage and leased out the apartment vacant to a solid long-term tenant.
The smaller capital cities of Hobart, Darwin, Adelaide and Canberra are showing record low vacancy rates with only Canberra being above 1%. In Darwin, it was reported that there were just 282 properties available to rent and the vacancy rate was just 0.9%.
Adelaide too had a vacancy rate at a low 0.7%. While Hobart showed barely 175 properties available and the countries lowest vacancy for a capital city at 0.6%.
Perth has seen a remarkable turnaround. Back in December 2016, Perth hit a record high vacancy of 5.5%. Last December (2019) it had dropped to 2.5%, and this December was a low 0.9%, with house rents increasing by 10.5% and apartments 9.5% over 12 months.
To see the Sydney, Melbourne and Brisbane vacancy rates and selected high vacancy areas go here.
