Vacancy rates dropped in most capital cities in August 2017. According to reports, the national vacancy rate of 2.2% was slightly lower than last year’s 2.3%.
Melbourne and Hobart are experiencing sharp increases in median asking rents while Adelaide’s vacancy rate fell from 1.9% to 1.6%. Hobart sees the lowest vacancy rate and both its prices and rents are rising further.
Meanwhile, Brisbane and Perth have experienced a drop in vacancy rates last August. Many experts believe that, after falling 34 per cent, the Perth market will soon begin improving. Similarly Darwin has recorded seven consecutive falls in vacancy rate; but now the rental downturn may be closer to over in the Northern Territory.
Darwin, on the other hand, recorded seven consecutive falls in vacancy rate, which means the rental downturn may be over in the Northern Territory.
Records show the rental market in most capital cities is not significantly deteriorating. Immigration has increased and dwelling completions are expected to peak in 2018.
Rents are expected to increase at a faster pace in 2018 as there are mounting concerns for significant rental shortages in 2019 in Sydney and Melbourne.
In May, the delinquencies lasting between 30 and 60 days in Melbourne had declined to 1.35% and Hobart arrears had sharply fallen to 1.45%. The same period in Sydney was 0.84% while ACT had a delinquency rate of 0.90%. Adelaide’s delinquency rate has increased to 2.20% while rates are 2.66% in Perth and 2.82% in Darwin. Delinquencies were higher in regional markets, including South Australia. However, national delinquency rates will remain lower than in 2011 and 2012, thanks to Sydney and Melbourne.
What can you do?
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