Rental vacancies in decline

Rental-potential-is-improving-across-capital-cities_157_89807_0_14101767_300Residential rentals are a popular choice with investors, especially when it comes to capital city markets.

These can typically be difficult places for first-time buyers to make their move onto the property ladder, which often means they end up renting property instead.

This opens up a host of opportunities for investors, as they can make the most of this sustained demand and hopefully find a steady stream of reliable tenants.

One piece of information you’ll need to take a closer look at before buying a rental property is what the vacancy rate is like in the local area, as this will give you an idea of how the market is faring.

SQM Research recently revealed its residential vacancy data for October, which pointed to 2.1 per cent of properties in the nation’s capitals being without tenants.

This was down slightly from the 2.2 per cent recorded the previous month, suggesting the situation is starting to improve for the nation’s landlords.

Some capital cities are seeing greater demand for rental properties than others at the moment, which is why you’ll need to engage in some extensive research.

Managing Director of SQM Research Louis Christopher said: “We continue to see ongoing rental weakness in Perth and Darwin.

“Canberra is now providing signals that perhaps the worst of the rental downturn is over with a slight fall in vacancies year on year and a rise in asking rents for the month.”

Sydney remains the one to watch, as Mr Christopher revealed asking rents for houses have increased 6.4 per cent over the past year, while its vacancy rate was just 1.6 per cent in October.

This news came as SQM Research revealed through its November 11 weekly update that the median price of a freestanding property in the Harbour City had exceeded $1 million.

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