<p><a href="https://www.apartments.com.au/developments/collingwood-vic-3066">Collingwood</a>’s northern edge continues to sharpen its reputation as one of Melbourne’s most compelling cultural precincts, where established creative institutions, leading hospitality, and independent fashion converge within a tightly held inner-city neighbourhood.</p>

<p>Set within this evolving pocket, <a href="https://www.apartments.com.au/new-apartments/derby-street-by-milieu-collingwood-4-derby-street-collingwood-vic-3066">Derby Street by Milieu</a> draws on a location that balances proximity to some of the inner north’s most influential destinations with the quieter, tree-lined character that defines the streets edging East Melbourne. Positioned just moments from both Smith and Gertrude Streets, the address sits on the periphery of Collingwood’s cultural core, offering immediate access without the intensity of its busiest frontages.&nbsp;</p>

<p>[smartcode_project:default project_id=145576 project_image_fid=355945]</p>

<p>Gertrude Street, in particular, anchors the area’s identity as a destination for Melbourne’s leading food, art and fashion. Within a short walk, venues such as Marion, Cutler &amp; Co, IDES and the Builders Arms Hotel define a tightly curated dining scene with enduring citywide appeal, complemented by a strong fashion and retail presence including Havn, Le Labo and a selection of independent boutiques.</p>

<p>Nearby, institutions such as the Australian Print Workshop and Collingwood Yards sustain a constant rhythm of exhibitions, performances and creative output, embedding art and culture into the everyday fabric of the neighbourhood.</p>

<p>Smith Street, running parallel, extends this offering with a broader mix of hospitality and nightlife, maintaining its status as one of Melbourne’s most active inner-urban strips.</p>

<p>Beyond these high-energy streets, the immediate surrounds shift in tone. Derby Street and its neighbouring blocks are defined by low-rise heritage terraces, mature trees and a settled residential character. Fitzroy Gardens and Carlton Gardens are both within walking distance, alongside the Royal Exhibition Building and Melbourne Museum, bringing together green space and cultural landmarks within minutes of home.</p>

<p>[smartcode_project:default project_id=145576 project_image_fid=355985]</p>

<p>Connectivity remains a key advantage. The CBD sits within easy reach, accessible by tram along Smith Street in around 20 minutes, while also remaining close enough to walk or cycle, supported by the inner north’s established bike network.&nbsp;</p>

<p><a href="https://www.apartments.com.au/developers/milieu-property">Milieu</a>’s long-standing connection to Collingwood underpins the project’s approach. With a portfolio that includes multiple nearby developments across Bedford, Peel and Napier Streets, the developer brings a sustained understanding of the area’s character and evolution. Derby Street continues this trajectory as a collaboration with award-winning Melbourne-based <a href="https://www.apartments.com.au/architects/studio-bright">Studio Bright</a>, marking the practice’s first multi-residential project in the inner north and reflecting a shared focus on design integrity and contextual response.&nbsp;</p>

<p>Balancing connection to the neighbourhood with a sense of seclusion and refuge, Derby Street by Milieu embodies a level of care and craft typically reserved for single residential projects. Comprising 22 residences across six storeys, with two to four-bedroom configurations priced from $1.15 million, the project is currently under construction with completion expected in late 2027.&nbsp;</p>

<p>[smartcode_project_cta:default project_id=145576]</p>


Joel Robinson

Derby Street by Milieu, at the top end of Collingwood

<p data-end="308" data-start="101">A rare new apartment development in the Blue Mountains is the latest in a string of State Significant Development Applications submitted through the New South Wales Government's Housing Delivery Authority.</p>

<p data-end="563" data-start="310">A total of 270 apartments are being proposed for the 1.16-hectare site at <a href="https://www.apartments.com.au/new-apartments/blue-mountains-alpine-retreat-142-150-narrow-neck-road-katoomba-nsw-2780">142–150 Narrow Neck Road in Katoomba</a>, a parcel of land adjoining the former Katoomba Golf Course. The site was acquired for $3.85 million in 2021 by private developer VDM Prime.</p>

<p data-end="783" data-start="565">The apartments, comprising a mix of serviced apartments, affordable housing, and traditional build-to-sell product, will be spread across eight low-rise buildings, along with a separate building for a new restaurant, arranged around a green spine that leads to a central park.</p>

<p><img alt="Katoomba" data-entity-type="file" data-entity-uuid="ee9a2072-f465-44f1-9076-80c9c8ecca02" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-22%20at%209.20.21%E2%80%AFAM.png?VersionId=4bT0vQ7j_syl65wcrJmHGm3m5pTvwrY_" /></p>

<p data-end="980" data-start="785">The Urban Design Report by Atlas Urban says the vision is to create a "contemporary mountain precinct that is responsive to its escarpment landscape, heritage character, and community context."</p>

<p data-end="1226" data-start="982">"The development responds to the current housing supply and affordability challenges identified under the NSW Housing Delivery Authority (HDA), providing a balanced mix of standard, affordable, and short-stay accommodation," the report noted.</p>

<p data-end="1472" data-start="1228">"By introducing a variety of dwelling types and tenures, the proposal supports intergenerational living, local workforce retention, and greater housing choice within an area constrained by topography, heritage, and environmental protections."</p>

<p data-end="1668" data-start="1474">Of the 270 units proposed, 52 will be serviced apartments. The remainder will comprise 54 studios, 121 one-bedroom units, 39 two-bedroom apartments, and four three- to four-bedroom residences.</p>

<p data-end="1668" data-start="1474"><img alt="Katoomba" data-entity-type="file" data-entity-uuid="f704508d-1bdf-4170-955d-0256652402a7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-22%20at%209.56.49%E2%80%AFAM.png?VersionId=TzarHMO4gTOsblCqsbJQkvMqWj9nu2Au" /></p>

<p data-end="1932" data-start="1670">The Design Report, by VDM Prime and appointed architect Antoniades Architects, noted that the design seeks to "provide a built form outcome that is highly considered, respectful and contextually fitting, whilst contributing positively to an evolving precinct."</p>

<p data-end="2162" data-start="1934">"The site offers three frontages and the opportunity to provide a meaningful interface with the public domain environment. the design has a sympathetic response to streetscape and the green open space that surrounds the site."</p>

<p data-end="2721" data-start="2164">The report states that the buildings are broken up to establish an appropriate bulk and scale, emphasised through height and setback strategies and defined through articulation that supports the transition of precinct granularity. It also notes that a central communal open space is established through the site to enhance the social dynamic and access to amenity, including natural ventilation and light to the apartments. The east and west frontages receive solar access during the morning and afternoon, whilst maximising views to the green open space.</p>

<p data-end="2883" data-start="2723">The site adjoins the recently completed Yarrabee Katoomba development, comprising 24 duplexes that were completed last year and sold through McGrath Projects.</p>

<p data-end="2883" data-start="2723">The relatively new Housing Delivery Authority pathway established by the NSW Government allows developers to submit State Significant Development Applications through a fast-tracked state process, effectively reducing reliance on local council approval pathways and aiming to accelerate housing delivery across New South Wales.</p>


First look: Nearly 300 apartments pitched on former Katoomba golf course site

<p>In Melbourne’s established inner east, the qualities that define a traditional house, width, height, and access to open ground, are increasingly difficult to replicate in new residential developments. Larger landholdings are scarce, and with them, the ability to create apartments that extend beyond compact, internalised layouts.&nbsp;</p>

<p>In <a href="https://www.apartments.com.au/developments/kew-vic-3101">Kew</a>, where the residential fabric is shaped by generous setbacks and mature tree canopies, that tension is especially visible.</p>

<p><a href="https://www.apartments.com.au/developers/ricdanic-investments-pty-ltd">Ricdanic</a>&nbsp;is bringing forward a boutique collection of just 13 residences across two buildings at 9–11 Wimba Avenue, Kew. Comprising six homes at No.9 and seven at No.11, the project sits on a quiet, tree-lined street just off Cotham Road.&nbsp;</p>

<p>Each apartment has been planned with a level of independence more commonly associated with standalone dwellings, balancing privacy with the efficiencies of apartment living.</p>

<p>Architect Chris Idle, who has been practising for over two decades, says projects like this don’t come along often.</p>

<p>“There are very few opportunities to do these kinds of developments in leafy, established suburbs,” he explains. “To get this level of amenity, natural light, and architectural freedom in such a setting is extremely rare.”</p>

<p>[smartcode_project:default project_id=140755 project_image_fid=366267]</p>

<p>The internal planning begins with width. Living areas extend beyond five metres, allowing furniture, circulation, and glazing to sit comfortably within the same zone without compression. Ceiling heights shift from three metres through to five metres in select areas, changing the sense of scale as you move through the apartment. These proportions are paired with double-glazed windows and fully electric systems, balancing volume with performance, supported by a 7.2 NatHERS energy rating.&nbsp;</p>

<p>From the main living space, the apartments open directly outward. Large sliding doors connect to private gardens averaging 125 square metres, with some residences also incorporating balconies of around 60 square metres. Rather than acting as secondary outdoor zones, these areas sit flush with the internal floor level, extending the usable footprint of the home and allowing for multiple modes of use, whether for quiet daily routines or larger gatherings.&nbsp;</p>

<p>The landscape, led by <a href="https://www.apartments.com.au/landscape-architect/john-patrick-landscape-architects">John Patrick</a>, reinforces this relationship. Across the site, 23 different plant species have been introduced, including a mix of native and established varieties, arranged to maintain privacy while preserving sightlines and light access. Gardens are not treated as decorative buffers but as functional extensions of the apartments, shaped to accommodate movement, seating, and informal use over time.&nbsp;</p>

<p>[smartcode_project:default project_id=140755 project_image_fid=366265]</p>

<p>Architecturally, the project draws from Kew’s historic residential language. Handmade bricks by Krause define the exterior, grounding the buildings within the material palette of the suburb, while interior finishes, stone, timber flooring, and restrained detailing, continue this approach internally. Architect Chris Idle describes the intent as long-term rather than stylistic: “We wanted it to feel timeless.”&nbsp;</p>

<p>This emphasis on durability extends to how the buildings are accessed and secured. Entry is managed through keyless systems, with a double-gated basement incorporating number plate recognition for vehicle access. Each residence is paired with a private lock-up garage accommodating two to three cars, alongside storage, while all entry points are monitored continuously. These measures sit alongside EV readiness and fully electric infrastructure, aligning the project’s operational systems with its long-term design outlook.&nbsp;</p>

<p>The setting remains central to how the development is experienced. Located within walking distance of Kew Junction and close to established schools including Carey Grammar and Xavier College, the address benefits from existing infrastructure while maintaining a residential quietness that is increasingly difficult to find at this scale.&nbsp;</p>

<p>Construction is being delivered by <a href="https://www.apartments.com.au/builders/sinjen">Sinjen</a>, with a 10-year structural guarantee, with completion targeted for mid-2027.</p>

<p>[smartcode_project_cta:default project_id=140755]</p>


Inside Wimba Ave, Kew’s garden-scale residences designed for space and permanence

<p>High-end Sydney developer&nbsp;<a href="https://www.apartments.com.au/developers/abadeen-group">Abadeen</a> has secured approval for one of its latest Mosman projects, one of the first developments approved by Mosman Council under the NSW Government’s Low and Mid-Rise Housing Policy.</p>

<p>The approval represents an important step in delivering well-considered housing next to established village locations on Sydney’s Lower North Shore, in line with the intent of the Low and Mid-Rise zoning framework.<br />
&nbsp;<br />
There are currently 13 other sites lodged within Mosman Council under the policy, with <a href="https://www.apartments.com.au/new-apartments/27-29-heydon-street-mosman-nsw-2088">Heydon Street</a> among the first to receive development consent.<br />
&nbsp;<br />
Abadeen Founder and Executive Chairman Justin Brown said the project reflects a considered and appropriate response to its planning context.<br />
&nbsp;<br />
“This approval demonstrates how carefully considered, design-led development can align with the objectives of the Low and Mid-Rise Housing Policy," Brown said.</p>

<p>"The scheme has been designed to respond sensitively to its village setting, with a built form, scale and level of amenity appropriate to its local context. The determination reflects a balanced and considered planning outcome, with Council recognising the capacity for this site to accommodate additional housing within a well-located and established precinct.”</p>

<p><img alt="Abadeen secures first approval under low and mid-rise housing policy for Heydon Street, Mosman" data-entity-type="file" data-entity-uuid="92811ce3-02e8-44fc-996e-c61ae039bd3e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Heydon%20Street%20Aerial.jpg?VersionId=ZHJVuWQT64QcdrFJx963pFWFzTX7lI2I" /></p>

<p>The Heydon Street approval followed extensive consultation with Mosman Council, with Abadeen working closely with Council throughout the assessment process.</p>

<p>The approved scheme comprises 27 residences, with only four per floor, creating a low-density living environment. The building will include four half-floor penthouses designed to capture views across Middle Harbour, Sydney Harbour and the surrounding district.&nbsp;</p>

<p>The project is expected to appeal to downsizers and owner-occupiers seeking house-like proportions, privacy and local convenience. There will be north-facing Middle Harbour views from the second level upward. It is also just a flat 100-metre walk to Bridgepoint Shopping Centre, which will appeal to owner-occupiers and in particular downsizers.</p>

<p>Two-bedroom residences are expected to be priced from $1.99 million when sales launch later this year.<br />
&nbsp;<br />
Joe Tack, CEO at Abadeen, said the outcome reflects both the quality of the site and the broader need for well-located housing.<br />
&nbsp;<br />
“This is a highly considered site within a highly established local setting, offering elevated views and strong connectivity. The project has been designed to respond to that context, delivering a scale and quality of housing aligned with both the planning framework and evolving market demand.”<br />
&nbsp;<br />
“This approval is particularly significant in the context of Mosman, where new housing supply has historically been limited. While it represents the first approval of this scale in Mosman to be achieved in over 50 years, it is importantly located within a well-established residential location, in close proximity to the established commercial amenity of Spit Road and Mosman Village. It reflects strong confidence in Abadeen’s approach to design, delivery and community integration, while contributing to the delivery of much-needed housing in a highly constrained market.”</p>

<p>Abadeen has an established track record across Sydney’s Lower North Shore, with recent completions including KOYO in Crows Nest and ENSO in Neutral Bay.</p>

<p>In Mosman, Abadeen recently completed The Hampden, with Mosman Residences on the corner of Spit Road and Clifford Street scheduled for completion later this year. Construction has also commenced at Burran Residences, comprising three full-floor ultra-premium homes positioned just 50 metres from Balmoral Beach, with residences expected to achieve prices in excess of $20 million. Two further projects are also progressing through planning within the local government area.</p>


Abadeen secures first approval under low and mid-rise housing policy for Heydon Street, Mosman apartment development

<p data-end="294" data-start="93">Apartment developer <a href="https://www.apartments.com.au/developers/martello">Martello™</a> is one of the latest entrants to the Gold Coast development market, with its debut project set to be one of the most boutique offerings on Chevron Island in recent years.</p>

<p data-end="461" data-start="296">Martello has unveiled <a href="https://www.apartments.com.au/new-apartments/aere-chevron-island-18-20-mawarra-street-chevron-island-qld-4217">Aere Chevron Island</a>, a collection of 33 large-scale two-, three-, and four-bedroom apartments across an 18-storey building on Mawarra Street.</p>

<p data-end="461" data-start="296">[smartcode_project:default project_id=143932 project_image_fid=367517]</p>

<p data-end="695" data-start="463">The developer has placed a strong emphasis on wellness, briefing architecture firm Raunik Design to embed this philosophy into the project. It is a direction <a href="https://www.apartments.com.au/developers/martello">Martello™</a> plans to carry through its future developments along the coast.</p>

<p data-end="1094" data-start="697"><a href="https://www.apartments.com.au/developers/martello">Martello™</a> has positioned Aere as a continuation of its human-centric development approach, with a focus extending beyond amenity to the fundamentals of layout, natural light, and spatial planning. Promax Construction has already been appointed to deliver the project, with construction expected to commence in the coming months as part of the group’s broader expansion into South East Queensland.</p>

<p data-end="1443" data-start="1096">Rising above the low-rise fabric of Chevron Island, Aere’s design emphasises generous internal proportions and uninterrupted outlooks, with residences oriented to capture coastal, skyline, and waterway views. Interiors prioritise open-plan living, with large-format glazing and carefully considered transitions between indoor and outdoor spaces.</p>

<p data-end="1443" data-start="1096">[smartcode_project:default project_id=143932 project_image_fid=367508]</p>

<p data-end="1788" data-start="1445">The upper levels are dedicated to larger-format homes, including four-bedroom residences designed as half-floor offerings. These layouts prioritise separation between living and sleeping zones, along with increased privacy and storage, features more commonly associated with detached housing than traditional apartment product.</p>

<p data-end="2059" data-start="1790">Aere’s private resident amenity spaces centre on wellness. A rooftop level will incorporate a heated swimming pool, sauna and spa, alongside a residents’ lounge, dining areas and barbecue spaces, while additional shared facilities throughout the building include a gym and yoga area.</p>

<p data-end="2335" data-start="2061">The inclusion of both social and quieter retreat spaces reflects a broader shift in higher-end apartment design on the Gold Coast, where developers are increasingly responding to owner-occupier demand for buildings that support long-term living rather than short-stay use.</p>

<p data-end="2335" data-start="2061">[smartcode_project:default project_id=143932 project_image_fid=367814]</p>

<p data-end="2560" data-start="2337">Aere is positioned within walking distance of Chevron Island’s village centre along Thomas Drive, as well as the HOTA cultural precinct via the Green Bridge, connecting residents to parklands, galleries, and event spaces.</p>

<p data-end="2762" data-start="2562">For <a href="https://www.apartments.com.au/developers/martello">Martello™</a>, Aere represents the first in a series of planned Gold Coast developments, with the group also exploring opportunities in other coastal precincts, including Kirra and Palm Beach.</p>

<p data-end="3111" data-start="2764">The move north comes as sustained population growth and infrastructure investment continue to reshape South East Queensland, with developers increasingly targeting boutique, design-led projects in established lifestyle pockets. Aere’s relatively small scale and emphasis on spatial quality position it within this emerging segment of the market.</p>

<p>[smartcode_project_cta:default project_id=143932]</p>


Martello™ enters Gold Coast market with wellness-led Chevron Island development Aere

Vacancy Rates

<p>The national residential rental vacancy rate fell to 1.7% June down from 1.8% in the month prior, reflecting the lowest vacancy rate at the national level since May 2011.&nbsp;</p>

<p>Vacancy rates continue to fall for Sydney, Melbourne, Adelaide and Hobart, while some regional locations recorded a moderate rise in vacancies.<br />
&nbsp;<br />
The total number of vacancies Australia-wide now stands at 60,457 residential properties, down from 62,144 in May.&nbsp;</p>

<p>Melbourne&rsquo;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%.&nbsp;</p>

<p>[smartcode_project:default project_id=3459 project_image_fid=147569]</p>

<p>SQM calculated vacancy rates fell again within the Melbourne CBD to 5.8%.</p>

<p>It also fell in the Sydney CBD to 5.6%.</p>

<p>Just a month prior the CBD vacancy rates sat at 8% in Melbourne, and in the Sydney CBD at 6.8%.</p>

<p>[smartcode_project:default project_id=7758 project_image_fid=79424]</p>

<p>Both CBD were seeing &quot;a return towards more-longer term levels,&quot; according to SQM&#39;s Louis Christopher.</p>

<p>The &nbsp;Melbourne CBD vacancy rates was at 8.3% in April.</p>

<p>Other capital city results saw Brisbane at at 1.3%.</p>

<p>In Adelaide, Canberra and Hobart, the June vacancy rate remained below 1%, while Perth (0.9%) and Darwin (0.4%) remained constant.&nbsp;</p>

<p>Darwin has been positively affected by Covid-19, as low vacancy rates continue to boost rents.&nbsp;</p>


Melbourne’s June vacancy rate fell to 3.5% from 3.7% in May, while in Sydney vacancy rates dropped to 2.8% from 2.9%

jchancellor-FAypfDUnLy

Vacancy rates in recovery for Melbourne CBD landlord investors: SQM

<p>Suburban vacancy rates continue to fall, according to new SQM Research data revealed Tuesday.</p>

<p>The Australian investment research house recorded a 0.2 per cent drop in the national residential rental vacancy rate over the month of April, falling to 1.9 per cent from 2.1 per cent in March.</p>

<figure><img alt="" class="image-article-full-width-580px" height="263" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/vacancy_rates.png?itok=K3RQjn1f" title="Vacancy Rates - April 2021" width="580" />

<figcaption>Vacancy Rates - April 2021</figcaption>
</figure>

<p>Melbourne&rsquo;s vacancy rate fell to 4.0 per cent in April from 4.4 per cent, while in Sydney it dropped to 3.1 per cent from 3.4 per cent.</p>

<p>In Adelaide, Canberra and Hobart, the vacancy rate remained below 1.0 per cent, while Brisbane&rsquo;s fell to 1.4 per cent.</p>

<p>&ldquo;Along with the smaller capitals, Brisbane&rsquo;s vacancy rate has become extremely tight and so we are expecting a surge in rents for the city this year&rdquo;, Christopher said.</p>

<p>[smartcode_project:default project_id=26734 project_image_fid=153694]</p>

<p>Vacancy rates in Perth and Darwin saw the most significant drop over the year, with rates falling 1.3 per cent and 1.1 per cent, respectively.</p>

<p>Rents have also jumped in these smaller cities, a trend that SQM managing director Louis Christopher believes we could see continue given the recent commodities boom for iron ore and other base metals.</p>

<figure><img alt="" class="image-article-full-width-580px" height="560" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/asking_prices.png?itok=xko1lk5t" title="Weekly Rents Index - 11 May 2021" width="580" />

<figcaption>Weekly Rents Index - 11 May 2021</figcaption>
</figure>

<p>&ldquo;Demand for rental accommodations is still outstripping supply, which is having the effect of boosting rents in many locations and unaffordable to lower income tenants&rdquo;, Christopher said.</p>

<p>In some locations, including the Gold Coast and New South Wales&rsquo; North Coast, landlords are demanding huge rent hikes, with asking rents soaring 32 per cent for houses on the Gold Coast over the year.</p>

<p>[smartcode_project:default project_id=22057 project_image_fid=150842]</p>

<p>This surge has occurred as people migrate out of the big capital cities and move to regional and warmer locations, as well as the number of occupiers per dwelling fall, the research revealed.</p>

<p>&ldquo;People are also looking for larger properties as they work from home and not wishing to live together.&rdquo;</p>

<p>In contrast, rates for Melbourne and Sydney CBDs remain elevated with the loss of international student tenants combined with apartment oversupply.</p>

<p>These were among the only areas recording rises in vacancy rates, excluding Sydney&rsquo;s Liverpool.</p>


As a result of demand outstripping supply, some locations, including the Gold Coast, are seeing asking rents soaring 32 per cent over the year

max.kwok_55688

National residential vacancy rates continue to fall: SQM Research

<html><body>
<div>
<em>SQM Research</em>'s released its latest news and views on vacancy rates and asking rents in Australia - with capital city vacancy rates nationally ticking down from 2.4 per cent to 2.3 per cent in August.</div>
<div> </div>
<div>SQM found that vacancy rates have increased strongly in Darwin (+2.0 per cent to 3.5 per cent) and Perth (+1.1 per cent to 3.7 per cent) over the past year. </div>
<div> </div>
<div>However, SQM also found that vacancy rates ticked down slightly across most capital cities in August. </div>
<div> </div>
<div>Given the strength of the dwelling supply response one would be forgiven for thinking that vacancy rates might have increased in Sydney and Melbourne over the past year.</div>
<div> </div>
<div>Yet this has not played out in either case, with city-wide vacancy rates declining to just 1.7 per cent in Sydney and 2.2 per cent in Melbourne respectively (from 2.6 per cent one year ago in the case of Melbourne).</div>
<div> </div>
<div><a href="/images/2015/09/16/SQM.jpg" target="_blank">Click to enlarge </a></div>
<div><img src="/images/2015/09/16/SQM.jpg" alt=""></div>
<div> </div>
<div>
<div>SQM's data showed that while rents in the largest capitals had increased ahead of the headline rate of inflation over the past year, asking rents for houses in Darwin have crashed by -21.3 per cent, while asking rents for houses in Perth were also down by -8.1 per cent.</div>
<div>
<br>Asking rents for houses were up strongly in Hobart (+6.7 per cent) as the market tightens, with vacancy rates in the Tasmanian capital now at just 1.1 per cent. </div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Demographics</span></strong></div>
<div> </div>
<div>Despite very strong levels of approvals and construction, vacancy rates have actually decreased in Sydney and Melbourne over the past year.</div>
<div> </div>
<div>How so? One of the clues might be found in the ABS Population by Age &amp; Sex data which I analysed recently. </div>
<br><div>And that is that population growth has become increasingly focussed on the inner and middle ring suburbs of the largest capital cities, both cause and effect of the natrure of the supply response through this cycle, as well as emerging employment trends. </div>
<br><span>For example, see the headline 2009-2014 data for Greater </span>Melbourne<span>...</span>
</div>
<div><span> </span></div>
<div><a href="/images/2015/09/16/Pop1.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/09/16/Pop1.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<span>...Greater </span>Sydney<span>...</span>
</div>
<div><span> </span></div>
<div><a href="/images/2015/09/16/Pop2.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/09/16/Pop2.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<span>...and, to a somewhat lesser extent, Greater </span>Brisbane<span>.</span>
</div>
<div><span> </span></div>
<div><a href="/images/2015/09/16/Pop3.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span> </span></div>
<div><span><img src="/images/2015/09/16/Pop3.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div>There is, however, still a high volume of apartment approvals in the pipeline in all three of largest capitals.</div>
<br><div>As the above charts show over the long run the population growth to absorb the new supply has been evident, while much of the new high rise stock isn't that appealing to homebuyers in any case. </div>
<div> </div>
<div>Meanwhile, driven by a Sydney economic boom the New South Wales economy has added a thumping +118,800 jobs over the past 12 months.</div>
<div> </div>
<div>It should therefore be little surprise that interstate migration away from the Premier State had recently declined to its lowest level on record. </div>
<div> </div>
<div><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
<div> </div>
<div>Overall, not much sign of rising vacancy rates in the two largest capitals in this release, but SQM's Louis Christopher does see vacancies rising over the year ahead.</div>
<div>
<br>And I agree, With the strength of the dwelling construction cycle underway this must surely be the case.</div>
<div> </div>
<div>On a related note, dwelling construction surprisingly detracted from GDP growth in the second quarter, which would appear to be an anomalous result given the veritable forest of cranes on the city skylines.</div>
<div> </div>
<div>While I'm not in the business of issuing flash forecasts for GDP - a fool's errand if ever there was one - it wouldn't be a surprise to me to see dwelling construction and a positive reversal in net exports (and possibly, inventories) leading to a +0.5 per cent result for Q3, before quarterly growth of +0.7 per cent returning for the next few quarters thereafter. </div>
<div> </div>
<div>That said, whether or not household consumption and public/government investment can continue to produce the positive contributions that they did in Q2 is another question.</div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
</div>
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pwargent-M4siyDbqQY

Vacancy rates tighten a little: Pete Wargent

<html><body>
<div>EXPERT OBSERVER</div>
<div> </div>
<div>The national residential vacancy rate was stable at 2 per cent in March.</div>
<div> </div>
<div>This represents a slight decline from a year earlier, when the vacancy rate was 2.1 per cent.</div>
<div> </div>
<div>Only Melbourne and Hobart had higher vacancy rates than a year earlier. </div>
<div> </div>
<div>Given that properties need to be advertised for 3 weeks before being classified as vacant, there's more likely to be a jump in April as Airbnb operators and other short-term accommodation providers are forced to try more conventional routes for leasing their properties.</div>
<div> </div>
<div>The 6-month moving average by capital city is plotted below, not seasonally adjusted:</div>
<div> </div>
<div class="separator"><img src="https://1.bp.blogspot.com/-zJdu7a0K0QU/XpT_eswSm-I/AAAAAAAA1Og/-dMPxJ-RFect1lCV6nMdBke9TtLGEwfkwCNcBGAsYHQ/s640/SQM1.jpg" width="640" height="364" data-original-height="806" data-original-width="1414"></div>
<div> </div>
<div>With more short-term units hitting the market the median asking rental price was down in March.</div>
<div>
<br><strong>PETE WARGENT</strong><em> is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.</em>
</div>
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j.ballantyne1990-6AQqhLzZaK

Residential vacancy rates down to 2 percent: Pete Wargent

<html><body>
<p>Vacancy rates declined in January, after December's seasonal spike, according to SQM Research.</p>
<p class="p3"><span class="s1">All of the capital cities recorded a drop in January, not unusually for the time of year. </span></p>
<p class="p3"><a href="https://www.propertyobserver.com.au/images/2017/02/17/SQM.jpg" target="_blank"><span class="s1">Click to enlarge</span></a></p>
<p class="p3"><span class="s1"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/17/SQM.jpg" alt=""></span></p>
<p class="p3"><span class="s1">Nationally the vacancy rate of 2.4 percent was the same as one year previously.</span></p>
<p class="p3"><span class="s1">The tightest market was Hobart at 0.7 percent, the Tasmanian capital recording strong gains in median asking rents, while the highest vacancy rate was in Perth at 4.8 percent. </span></p>
<p class="p3"><span class="s1">Although the figures aren't seasonally adjusted, below I've smoothed them on a 4mMA basis to give some kind of feel for the trend. </span></p>
<p class="p3"><a href="https://www.propertyobserver.com.au/images/2017/02/17/SQM2.jpg" target="_blank"><span class="s1">Click to enlarge</span></a></p>
<p class="p3"><span class="s1"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/17/SQM2.jpg" alt=""></span></p>
<p class="p3"><span class="s1">Perth and Darwin have continued to record declining rents, while SQM noted that inner city apartments in Brisbane have seen declines of 2.5 to 5 per cent in asking rents, something I can confirm from having witnessed it first-hand. </span></p>
<p class="p3"><span class="s1">To date the Sydney and Melbourne apartment markets appear to be holding up better, with the reported vacancy rate in Melbourne actually lower than a year ago, and median asking rents higher in both of the most populous capital cities. </span><span style="font-size: 12.16px;"> </span></p>
<p class="p3"><span class="s1">After some truly diabolical declines in dwelling prices ranging anywhere from 50 to 90 per cent in some cases, SQM notes that the bust in some mining towns may now finally be bottoming out. </span><span style="font-size: 12.16px;"> </span></p>
<p class="p3"><span class="s1">Vacancy rates are down in a range of resources towns from a year previously.</span></p>
<p class="p3"><a href="https://www.propertyobserver.com.au/images/2017/02/17/SQM-1.jpg" target="_blank"><span class="s1">Click to enlarge</span></a></p>
<p class="p3"><span class="s1"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/17/SQM-1.jpg" alt=""></span></p>
<p class="p3"><span class="s2"><em>Source: SQM Research</em></span></p>
<p class="p3"><span class="s1">No, still not a buy, before you ask! </span></p>
<p class="p1"><span class="s1"><em>PETE WARGENT is the co-founder of </em><a href="https://allenwargent.com/"><span class="s2"><em>AllenWargent</em></span></a><em> property buyers (London, Sydney) and a best-selling author and </em><a href="https://petewargent.blogspot.com/"><span class="s2"><em>blogger</em></span></a><em>. </em></span></p>
<p class="p3"><span class="s1"> </span></p>
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Vacancy rates ease after seasonal spike: Pete Wargent

<html><body>
<p>If online listings are any guide, the rental market in Sydney has been tightening lately, with fewer rentals being advertised across a high number of suburbs.</p>
<p>According to the REINSW inner Sydney vacancy rates were unchanged in August at 1.9 per cent, but middle ring Sydney tightened by 0.3 per cent to 1.6 percent, while outer Sydney's vacancy rate of 1.7 per cent was the lowest since November 2015.</p>
<p><a href="/images/2016/09/23/B1-1.jpg" target="_blank">Click to enlarge</a></p>
<div id="x_post-body-4479739622962738159" class="x_post-body x_entry-content">
<div class="x_separator"><img src="/images/2016/09/23/B1-1.jpg" alt=""></div>
<br><div>Smoothing the figures on a 4mMA basis to nip out a bit of the noise shows that Sydney vacancy rates have been fairly flat over the past year in the middle and outer ring, but are some way tighter in the inner suburbs.</div>
<div> </div>
<div><a href="/images/2016/09/23/B2-1.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="x_separator"><img src="/images/2016/09/23/B2-1.jpg" alt=""></div>
<div> </div>
<div>The vacancy rate in Newcastle has sneaked back up to 3 percent.</div>
<div> </div>
<div>The Tenants' Union (TU) Rent Tracker found that Sydney unit rents moved 5 percent higher over the past year, while house rents were 3 percent higher. </div>
<div> </div>
<div><a href="/images/2016/09/23/Rents1.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="x_separator"><img src="/images/2016/09/23/Rents1.jpg" alt=""></div>
<br><div>Rents have moved sharply higher in Randwick and Woollahra over the past year according to the TU, but regional areas have been found to be "much more stable".</div>
<div> </div>
<div>The TU believes that the CPI measures understate Sydney's rental price growth. Their long run data also shows Sydney rents rising much faster than inflation.</div>
<br><div class="x_separator"><a href="/images/2016/09/23/A4.jpg" target="_blank">Click to enlarge</a></div>
<div class="x_separator"><img src="/images/2016/09/23/A4.jpg" alt=""></div>
<div class="x_separator"> </div>
<div class="x_separator"><span>According to the TU over the last 20 years new rents have generally increased at an average of around 8 per cent across Sydney and 5 per cent across the rest of New South Wales.</span></div>
<div class="x_separator"><span> </span></div>
<div class="x_separator">
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
</div>
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Sydney vacancy rates tighten again

<html><body>
<p>The national residential rental vacancy rate remained stable at 2.1 per cent over the month of November, SQM Research revealed Tuesday.  </p>

<p>The month of November ended with the total number of vacancies Australia-wide now at 78,879, with the vacancy rate slightly below the same time last year at 2.2 per cent.</p>

<p>Capital city vacancy rates remained stable over the month, with the exception of Sydney and Brisbane, which recorded a 0.1 per cent and 0.2 per cent decrease, respectively.</p>

<p>Sydney saw a minor decrease from 3.6 per cent in October to 3.5 per cent in November.</p>

<p>Melbourne’s vacancy rate – the highest in the nation – remained at 4.4 per cent in November. This time last year, Melbourne’s vacancy rate was at a low 2.2 per cent.</p>

<p>The surplus of rental property is most acute in Melbourne and Sydney’s CBDs, with Melbourne’s vacancy rate standing at 9.1 per cent.</p>

<p>Sydney CBD vacancy rate peaked at 16.2 per cent in May 2020 but has declined to 9.5 per cent in November.</p>

<table border="1" cellpadding="1" cellspacing="1" style="width:500px;"><tbody>
<tr>
<td><strong>City</strong></td>
			<td><strong>NOV 2019 Vacancies</strong></td>
			<td><strong>NOV 2019 Vacancy Rate</strong></td>
			<td><strong>OCT 2020 Vacancies</strong></td>
			<td><strong>OCT 2020 Vacancy Rate</strong></td>
			<td><strong>NOV 2020 Vacancies</strong></td>
			<td><strong>NOV 2020 Vacancy Rate</strong></td>
		</tr>
<tr>
<td>Sydney</td>
			<td>24,258</td>
			<td>3.4%</td>
			<td>26,455</td>
			<td>3.6%</td>
			<td>26,161</td>
			<td>3.5%</td>
		</tr>
<tr>
<td>Melbourne</td>
			<td>12,963</td>
			<td>2.2%</td>
			<td>27,070</td>
			<td>4.4%</td>
			<td>26,946</td>
			<td>4.4%</td>
		</tr>
<tr>
<td>Brisbane</td>
			<td>8,629</td>
			<td>2.5%</td>
			<td>6,912</td>
			<td>2.0%</td>
			<td>6,455</td>
			<td>1.8%</td>
		</tr>
<tr>
<td>Perth</td>
			<td>5,200</td>
			<td>2.5%</td>
			<td>1,936</td>
			<td>0.9%</td>
			<td>1,835</td>
			<td>0.9%</td>
		</tr>
<tr>
<td>Adelaide</td>
			<td>1,896</td>
			<td>1.0%</td>
			<td>1,501</td>
			<td>0.8%</td>
			<td>1,543</td>
			<td>0.8%</td>
		</tr>
<tr>
<td>Canberra</td>
			<td>756</td>
			<td>1.1%</td>
			<td>608</td>
			<td>0.9%</td>
			<td>601</td>
			<td>0.9%</td>
		</tr>
<tr>
<td>Darwin</td>
			<td>981</td>
			<td>3.1%</td>
			<td>217</td>
			<td>0.7%</td>
			<td>233</td>
			<td>0.7%</td>
		</tr>
<tr>
<td>Hobart</td>
			<td>159</td>
			<td>0.5%</td>
			<td>204</td>
			<td>0.6%</td>
			<td>192</td>
			<td>0.6%</td>
		</tr>
<tr>
<td><strong>National</strong></td>
			<td><strong>75,947</strong></td>
			<td><strong>2.2%</strong></td>
			<td><strong>74,221</strong></td>
			<td><strong>2.1%</strong></td>
			<td><strong>72,879</strong></td>
			<td><strong>2.1%</strong></td>
		</tr>
</tbody></table>
<p><strong>Asking Rents</strong></p>

<p>Over the month, capital city average asking rents increased 0.4 per cent for houses but decreased 0.2 per cent for units for the week ending December 12, to record asking rents of $540 per week for houses and $408 per week for units.</p>

<p>Most capital cities recorded increases in both house and unit asking rents.</p>

<p>Darwin recorded the highest increase of 6.7 per cent over the month for houses and 4.3 per cent in unit asking rents, followed by Hobart which recorded a 6.4 per cent increase in house rents and 3.3 per cent increase in unit rents.</p>

<p>Melbourne, however, recorded declines in both house and unit asking rents over the month of 0.1 per cent and 1.4 per cent respectively.</p>

<p>Sydney and Canberra recorded rental increases in houses of 0.9 per cent and 3.5 per cent respectively, but a decline in unit rents of 0.6 per cent and 1.2 per cent.</p>

<p><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/sqm-research-december-15.jpg" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="448" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/sqm-research-december-15.jpg?itok=L5VVfE-V" width="580"></a></p>

<p>"Rents for units in our two largest cities are still falling, though I note there appears to be a commencement of a reversal in the abundance of listings in the CBD’s of these two cities. They are still very elevated. But we could be starting to see some of the population moving back to the CBD and inner city locations”, SQM’s Louis Christopher said.</p>
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The national residential rental vacancy rate remained stable at 2.1 per cent over the month of November, SQM Research revealed

National rental vacancy rate remains stable: SQM Research

<html><body>
<p>The national residential rental vacancy rate dropped over August, according to figures released by SQM Research. </p>
<p>It dropped from 2.1 per cent to two per cent, with the total number of vacancies across the country dropping to 69,971.</p>
<p>But the locked-down Melbourne's rates have continued to soar, with its CBD recording its highest ever vacancy rate of 10 per cent, up from 8.8 per cent in July.</p>
<p>City-wide, the vacancy rate rose from 3.1 per cent to 3.4 per cent.</p>
<p>It was better news for property owners in other capital city CBD's.</p>
<p>Sydney's CBD vacancy rates are now 12.9 per cent, down from its record high of 16.2 per cent in May.</p>
<p>The Brisbane CBD also saw its vacancy rate scale back, to 11.4 per cent. Its high came in June when there were 14 per cent of residential properties vacant.</p>
<p>Adelaide's CBD vacancy rate also jumped, to 8.4 per cent from 7.6 per cent. Perth CBD remained stable at 5.5 per cent.</p>
<p>To enlarge, <a href="https://www.propertyobserver.com.au/images/2020/9/15/SQM%20vacancy%20rates.png" target="_blank">click here</a>.</p>
<p> <img src="https://www.urban.com.au/images/2020/9/15/SQM%20vacancy%20rates.png" alt=""></p>
<p>Sydney still has the highest vacancy rate in the country. Despite scaling back 0.1 per cent in July, the vacancy rate still sits at 3.5 per cent.</p>
<p>Hobart’s vacancy rate is the lowest in the nation at 0.7%, with Canberra and Adelaide also recording low vacancy rates of 0.8% and 0.9% respectively. <span class="Apple-converted-space"> </span></p>
<p><span class="Apple-converted-space">The regional market continues to be sought-after as city dwellers seek a life outside of CBD's.</span></p>
<p class="p1">Most regional locations recorded falls in rental vacancy rates, with Sydney’s <span class="s1">Blue Mountains</span> falling to a record low rental vacancy rate of just 0.7%, along with Victoria’s <span class="s1">Mornington Peninsula</span>.<span class="Apple-converted-space"> </span></p>
<p class="p1">Queensland’s<span class="s1"> Ipswich </span>fell to just 0.9%.<span class="Apple-converted-space"> </span></p>
<p class="p1"><span class="Apple-converted-space"> </span></p>
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jrobinson-rf4aSBido9

Melbourne spikes, but residential vacancy rates decrease over August: SQM Research

<html><body>
<p>EXPERT OBSERVER</p>
<p>Markets will little or nothing available for rent have become one of the most compelling stories in Australian real estate.</p>
<p>Vacancy rates under 1.5% are now common all over Australia and property managers with a new rental listing are finding dozens of candidates showing up to compete for the property.</p>
<p>Every day I’m having conversations with real estate professionals of various types – buyers agents, valuers, selling agents, property managers and developers, as well as everyday consumers – and I’m hearing the same stories from locations in every state and territory. There’s little or nothing available for rent and it’s putting serious upward pressure on rents.</p>
<p>Scott Mitchell runs Mitchells Realty in Queensland’s Hervey Bay. It’s a pretty good place to have a real estate agency at the moment because Hervey Bay is a good fit with one of the nation’s biggest trends – the Exodus to Affordable Lifestyle.</p>
<p>You can buy houses for around $300,000-350,000 and walk to the beach, where you’re looking across at stunning Fraser Island. Or, if you’re an investor, you can get rental returns on houses in the 5.5% to 6% range.</p>
<p>Right now the region’s vacancy rate is about 1%. Mitchell says a local property manager recently offered a place to rent and over 40 people showed up to compete for the tenancy. “They were queued up at the front of the house and I’ve never seen that in Hervey Bay before,” Mitchell says.</p>
<p>I’m hearing stories like that from professionals and investors around Australia. And this anecdotal evidence is supported by the data on vacancies and rents.</p>
<p>In the growth city of Gympie, just up the road from the Sunshine Coast, the vacancy rate is 0.6%.</p>
<p>In Bendigo in Victoria, most postcodes have vacancy rates below 0.5% (and most suburbs have had median house price growth between 8% and 15% in the past 12 months). It’s a similar story in Ballarat.</p>
<p>In Albury-Wodonga at the NSW-Victoria border, all of the local postcodes have vacancies under 1%, including two which are just 0.2% and one where vacancies are listed as zero.</p>
<p>Orange west of Sydney has a vacancy rate of 0.4%.</p>
<p>In Adelaide, the overall vacancy rate is below 1% and that’s common right across the South Australian capital. It’s similar across metropolitan Perth and in Hobart, Darwin and Canberra.</p>
<p>Hobart’s vacancy rate has been below 1% for years and is currently 0.7%.</p>
<p>Where are the investors? Mostly they’re sitting at home reading about how high the vacancies are in the Sydney and Melbourne CBDs and how rents are plummeting (to use a word beloved by journalists) in the two biggest cities. And being spooked by that and other media misinformation.</p>
<p>Your average punter isn’t well-informed and is essentially a herd animal. He or she thinks reading big city newspapers is research, when in reality it’s the antithesis of research – it’s the gathering of myths and misinformation and the absorption of negative vibes from journalists for whom the glass is always half empty or completely empty.</p>
<p>There are exceptions, of course, and investors with their radar attuned to opportunity are out there busily competing with first-home buyers and other owner-occupier consumers in places like Adelaide, Perth, Canberra, Brisbane and dozens of strong regional markets across the nation.</p>
<p><strong>Terry Ryder</strong><em> is the founder of hotspotting.com.au </em><br><em>ryder@hotspotting.com.au</em><br><em>twitter.com/hotspotting</em></p>
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Vacancy rates under 1.5% now common all over Australia: Hotspotting's Terry Ryder

<html><body>
<p>EXPERT OBSERVER</p>
<p>Vacancy rates are the most under-rated and under-reported of all the parameters that chart real estate markets.</p>
<p>Mainstream media is obsessed with short-term movements in median prices, which comprise a very blunt instrument for measuring property trends.</p>
<p>Among their many faults is that they are rubbery figures prone to all kinds of vagaries (observe the different figures from different sources about the same markets) and that their significance is often misinterpreted by writers who don’t understand real estate (most of them).</p>
<p>But their biggest weakness is that they describe the past when real estate consumers mostly want to know about the future of prices.</p>
<p>There are some tools that can provide a clue to the future movement of prices – one of them is sales volumes and another is vacancy rates.</p>
<p>Here’s a simplistic view of why they matter. If vacancies are low, rents will rise. And when rents rise, prices follow. It works in reverse as well: locations with high vacancies seldom deliver price growth.</p>
<p>So this makes trends with vacancy rates really important. And the recent trends suggest rising rents and ultimately prices in many locations around Australia.</p>
<p>This is an important thing to know. So why aren’t you reading about it in mainstream media? Because there are few journalists out there in the wacky world of media who know anything about real estate. They’re people who recycle press releases, invariably with an emphasis on the negative.</p>
<p>The reality is that vacancy rates are a remarkably positive story in Australia right now.</p>
<p>The latest figures indicate that there is ongoing improvement in vacancy rates in major markets around the nation – with a few exceptions.</p>
<p>SQM Research’s monthly report on vacancy rates for the eight state and territory capital cities shows that, for the third month in a row, there’s been a notable improvement in vacancies.</p>
<p>In April the national average vacancy rate was 2.6%. In May, it improved to 2.5%. In June it fell further top 2.2%. And now, the new figure for July, is a further improvement to 2.1%.</p>
<p>In June, the most significant thing was that vacancies fell in all eight capital cities. And, amid the new figures out for July, vacancies fell again in seven of the eight capital cities.</p>
<p>In five of the eight capital cities, vacancies are now below 1.5%. That means that Hobart, Canberra, Perth, Adelaide and Darwin all have very tight rental markets.</p>
<p>In addition, Brisbane’s vacancy rate is 2.2%, which is also low – while Melbourne has risen slightly to be a little above 3%.</p>
<p>Sydney has improved but remains higher than normal at 3.6%.</p>
<p>I know from Hotspotting’s day-to-day research that most regional centres also have been tight rental markets. Here are some NSW examples: Dubbo 0.7% and falling, Orange 0.4% and falling, Tamworth 2% and falling.</p>
<p>Vacancies are below 1% in most Bendigo postcodes and trending lower; all the postcodes in Ballarat are below 2% and falling; and all the towns of the Latrobe Valley are under 1% and going down.</p>
<p>The latest figures from both SQM and the REIQ confirm that central Queensland towns and cities have very low vacancies and rising rentals.</p>
<p>I could go on, but you get the picture.</p>
<p>The overall outcome is that there is – overall – a shortage of rental properties across Australia, despite all the impacts of the pandemic.</p>
<p>As a result of the generally low vacancies, rents rose 2.2% nationally in July for houses and were unchanged for apartments, according to the SQM Research figures.</p>
<p>House rents rose during July in Perth, Adelaide, Canberra, Hobart and Darwin.</p>
<p>And for apartments, rents rose during July in Brisbane, Perth, Adelaide, Canberra, Hobart and Darwin – everywhere in fact, except Sydney and Melbourne, which are the only cities with vacancies above the 3% benchmark.</p>
<p>It’s significant that the cities and regional areas with low vacancies are places where the pandemic, for now at least, is under control. Restrictions are relaxed, people are getting on with business and real estate markets are busy.</p>
<p>There is upward pressure on prices in many of these places, helped by improved confidence in all those parts of Australia that exist outside of Sydney and Melbourne.</p>
<p>Keep in mind that most Australians – two-thirds of them in fact – don’t live in our two biggest cities. They inhabit towns and cities where vacancies are low, rents are rising and there is upward pressure on prices.</p>
<p><strong>Terry Ryder</strong> <em>is the founder of hotspotting.com.au</em><br><em> ryder@hotspotting.com.au</em><br><em>twitter.com/hotspotting</em></p>
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