New data released by SQM Research has revealed the national residential rental vacancy rate has remained stable in March 2020 at 2.0% since last month, with the total number of vacancies Australia-wide now at 67,371 vacant residential properties.
Most states recorded minor 0.1% declines in vacancy rates with the exception of Sydney, Melbourne and Darwin which were stable.
The year on year comparison revealed a minor decline when the national rental vacancy rate in March 2019 was 2.1% compared to 2.0% recorded for March 2020. Only Melbourne and Hobart recorded higher vacancy rates compared to this time last year.
Managing Director of SQM Research, Louis Christopher said, “The minor decline in most capital cities’ vacancy rates for March was somewhat surprising given the uncertainty around economy. With job losses, a freeze in migration and an expected sharp rise in short-term accommodation vacancies, we are likely to record significant increases in rental vacancy rates as 2020 progresses. Let’s keep in mind our methodology requires a property to be advertised for three weeks or longer before we regard it as unoccupied.
“We note the 3.2% drop in asking rents for houses over the month which may well be as a result of many short-term accommodation dwellings entering into the longer term leasing market, and overall, a sign of things to come.“
Asking rents
Over the month, Capital city asking rents decreased 3.2% for houses and 2.9% for units for the week ending 12 April 2020 to record asking rents of $544 per week for houses and $428 per week for units.
Sydney, Melbourne, Brisbane and Hobart all recorded decreases in asking rents for both houses and units over the month.
Perth and Adelaide were the only capital cities to record rent increases for both houses and units. Perth increased by 1.9% for houses and 0.8% for units, whilst Adelaide recorded a 0.3% increase for houses and 1.4% for units.
Canberra and Darwin recorded increases in house asking rents with Canberra increasing by 2.6% and Darwin 0.1%. However, both cities had declines in unit prices over the month. Canberra declined by 0.1% and Darwin by 0.6%.
Key points
- National residential rental vacancy rate has remained stable in March 2020 at 0% since last month, with the total number of vacancies Australia-wide now at 67,371 vacant residential properties.
- Most states recorded minor 1% declines in vacancy rates with the exception of Sydney, Melbourne and Darwin which were stable.
- Over the month, Capital city asking rents decreased 2% for houses and 2.9% for units for the week ending 12 April 2020 to record asking rents of $544 per week for houses and $428 per week for units.