Posted: 2024-07-15 21:18:50

Pressure on renters eased slightly in June, with 4,845 extra properties listed as vacant, according to new figures from SQM Research.

But the situation is expected to get worse again soon for those looking to rent a property.

But first, here's the good news (if you can call it that).

The total number of rentals available for tenants rose to 40,486 in Australia last month, bringing the vacancy rate up to 1.3% (which is still very low).

Last month, there were 12,143 vacant rentals in Sydney (which brings the vacancy rate up to 1.7%).

Melbourne also saw its vacancy rate increase to 1.5% (up from 1.3%).

"Based on history, we have now reached the peak in rental vacancy rates for Winter," said SQM managing director Louis Christopher.

"It is likely that, starting in July, vacancy rates will begin to tighten again and keep tightening until November.

"The magnitude of that tightening is what we will watch closely to see if there is anything more than seasonal variations occurring.

"So far this year, it seems we have recorded very similar vacancy rates compared to the same period in 2023.

"However, there are some exceptions such as Melbourne which is up slightly from 2023 levels. As well as some regional exceptions such as the Gold Coast which is now recording the highest level of vacancies since 2020.

"Overall, the national rental market remains in severe shortage and barring some exceptions, is not expected to materially soften out of the rental crisis for some years.

"However, much of the structural rental shortage has now been priced into the rental market and so I do believe the days of 10-20% plus annual rental increases have come to an end."

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