Vacancy rates continue to fall for Sydney, Melbourne, Adelaide and Hobart. Five of the eight capital cities have vacancies below 1%, headed by Darwin and Hobart (both 0.4%).
Melbourne’s vacancy rate fell to 3.5% in June from 3.7% in May, while in Sydney vacancy rates dropped to 2.8% from 2.9%. Vacancy rates also fell further in the Sydney CBD (5.6%) and Melbourne CBD (5.8%), representing a return towards longer-term levels.
Brisbane’s vacancy rate has dropped from 2.4% a year ago to 1.3% now, while Darwin has fallen from 1.8% to 0.4% and Perth is down from 1.5% to 0.9%.
SQM Managing Director Louis Christopher says: “Rents are now accelerating in our larger capital cities which may have ramifications for the CPI read in the coming quarters.”