Not enough private investors are purchasing property in Australia and renting it out, according to the latest figures from independent housing advisory firm SQM Research.
It has found that the rental market remained extremely tight for October, calculating that the national vacancy rate for residential properties dropped 0.1 per cent to 1.8 per cent, equating to a total of 45,896 annually.
Capital cities are suffering the worst problems as Canberra and Perth both slumped down to a 0.7 per cent vacancy rate.
"For the meantime we do not see any light at the end of the tunnel where the rental market is concerned. The trends remain the same with no change in sight," said Louis Christopher, the managing director of SQM Research.
Melbourne remains oversupplied with rental property, with a rate of three per cent up from 2.6 per cent, well above the national average.
Property auction results released this week (November 21st) showed that the number of homes being purchased across Australia had fallen, despite the Reserve Bank of Australia's decision to cut interest rates.
Posted by Ravin Chatlani
