More rental properties now lie vacant

According to property market research house SQM, vacancy rates are on the rise. According to the report, Melbourne recorded the highest vacancy rate of 3.9%, while the Hobart market remained the tightest at just 1.1.

The greatest demand for rental property is at the most affordable end of the market, however there are signs of oversupply in the middle to top end of the market. Vacancy rates of 5 to 10 per cent can be expected in more affluent suburbs, particularly in Sydney, where vacancies in Vaucluse for example, have hit 11.4%.

Louis Christopher, SQM Research founder said “Vacancy rates for most postcodes around the country have been rising throughout 2008…We believe this phenomenon…has been a result of more and more vendors entering their properties into the rental market after failing to sell”.