Sydney and Melbourne rental shortages in 2019

PARRAMATTA, Australia - Oct. 3, 2017 - PRLog -- 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. The rental market in Perth has to improve as median asking rents dropped 34% lower than its peak. 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.

Mortgage delinquencies

In May, 30-plus delinquencies in Melbourne had declined to 1.35% and Hobart arrears had sharply fallen to 1.45%. The 30-plus delinquency rate 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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