Residential Vacancy Rates Fall As Population Growth Exceeds Expectations

Australian businesses have never had it better, according to the latest National Australia Business (NAB) survey released this week. The survey’s conditions index — a composite indicator that measures trading activity, profitability and employment — surged by a massive 7 points to +21, leaving it at the highest level since the survey began in 1997.

On this measure, Australian businesses have not had it this good in at least two decades.

As the chart above shows, there were enormous increases recorded in trading and profitability, suggesting that demand was rampant during October.

Residential vacancy rates fall as population growth exceeds expectations: SQM Research

Strong population growth in Australia’s major cities is driving demand for residential rental accommodation, justifying significant levels of apartment construction.

Data released by SQM Research showed the national residential vacancy rate at 2.1 per cent in October, compared with 2.3 per cent the same time last year.

A total of 67,781 properties were without tenants across the country, down from 74,368 in October 2016.

Even Brisbane, with a much highlighted oversupply of city apartment stock, recorded a month on month fall in vacancy rates from 3.2 per cent in September to 3 per cent in October, the same rate as a year earlier. Have a great weekend and catch you next week!

Troy Gunasekera