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Rent hikes ‘inevitable’ as vacancy rates soar

While the latest CoreLogic figures show that rental prices dropped by half a per cent nationally during the June quarter, projections suggest that a hike of rent prices is inevitable.

The national vacancy rate fell to 2.2 per cent over June, according to SQM research, with Propertyology finding that only four of the 52 largest cities and towns in Australia have a residential vacancy rate of over 3 per cent.

“The only thing currently preventing an official declaration of an Australian rental crisis is the sedation effect of the coronavirus containment measures,” said Propertyology Head of Research, Simon Pressley.

“Mark my words, sharp rent price rises are inevitable.”

Mr Pressley said that 39 of the aforementioned 52 cities and towns are under-supplied, nine have a balanced market, and the four over 3 per cent are “over-supplied”.

Five of the eight capital cities have vacancy rates under 2 per cent. Perth sits at 1.5 per cent.

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