Brisbane and Adelaide recorded minor decreases of 0.1% in vacancy rates, whilst Perth, Canberra and Darwin recorded a 0.2% decrease over the month.

Sydney, Melbourne and Hobart’s vacancy rate remained steady over the month.

Sydney continues to have the highest vacancy rate in the country at 3.5%, this time last year the rate was lower at 2.8%.  Melbourne remained at 2.0% in July, increasing from 1.6% 12 months ago.  Hobart’s vacancy rate was also steady in July and continues to be the lowest in the country at 0.5%.

Managing Director of SQM Research, Louis Christopher said, “While rental vacancy rate held steady in Sydney and Melbourne, they fell in most other cities over July. Perth continues to record a recovery in its rental market which should eventually feed through into a rise in dwelling prices.  After a false dawn, Darwin also appears to be recording tentative signs of a rental recovery.

Going forward, the expectation remains that Sydney and Melbourne will record higher rental vacancy rates in the 2^nd half of this year driven by ongoing high levels of dwelling completions from the tail of the last property boom.”

Asking rents

Capital city asking rents declined 0.5% for houses and 0.7% for units for the week ending 12 August 2019 to record asking rents of $546 per week for houses and $438 per week for units. In comparison, over the 12 months, asking rents for houses declined 0.4% for houses and a 0.5% decline for units.

Sydney asking rents for houses declined in July by 0.6%, however houses increased by 0.2%.  Canberra and Melbourne saw a decline in both houses and units to 12 August, with  Melbourne rents dropping 1.9% for houses and 0.3% for units, whilst Canberra rents dropped 2.5% for houses and 0.4% for units.

Brisbane was the only capital city to record increases in weekly rents over the month for both houses and units at 0.1% for both.

Key points

• National residential vacancy rates remained steady in July 2019 at 3% from June.
• Brisbane, Perth, Adelaide, Canberra and Darwin recorded minor decreases ranging from 1% to 0.2% over the month.
• Sydney, Melbourne and Hobart’s vacancy rate remained steady over the month.
• Sydney continues to record the highest vacancy rate of all capital cities at 5%.
• Hobart continues to record the lowest vacancy rate of 5%.
• Capital city asking rents declined 5% for houses and 0.7% for units for the week ending 12 August 2019 to record asking rents of $546 per week for houses and $438 per week for units.
• Brisbane was the only capital city to record increases in weekly rents over the month for both houses and units at 1% for both.

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