The total number of rental vacancies Australia-wide now stands at 36,741 residential properties, which was slightly down from 37,049 in June. Sydney and Melbourne vacancy rates fell to 1.5% and 1.6% from 1.6% and 1.7%.

However, it is noted some outer Sydney regional vacancies rose with the Central Coast and Wollongong recording increased vacancies. Vacancy rates in the Melbourne CBD, Sydney CBD and Brisbane CBD all fell to below average levels. Melbourne CBD fell to 2%, Sydney CBD fell to 3.4% and Brisbane CBD fell to 2.2%. This may be evidence of the rise in international arrivals requiring inner city accommodation.

Falls in the two largest capital cities were offset by rises elsewhere. Brisbane recorded an increase in rental vacancy rates to 0.7%.

The Gold Coast and the Sunshine Coast also recorded increased vacancies, albeit from very tight levels. Canberra rose to 0.9% with many ACT outer regions also recording a sharp rise in rental vacancies. Darwin rose to 0.6%.

Asking rents

Over the past 30 days to 12 August 2022, capital city asking rents rose by another 1.2% with the 12-month rise standing at 17.4%. Capital city house rents are recording 12 month increases of 15.1%, while unit rents have risen by 16.2%.

Hobart, Darwin and Canberra however recorded falls in weekly rents of 1.8%, 0.6% and 0.3% respectively.

The national median weekly asking rent for a dwelling stands at $496 a week.

Louis Christopher, Managing Director of SQM Research said: “We appear to be recording more evidence of a small easing in rental conditions. If it wasn’t for the falls in rental vacancies in Sydney and Melbourne, the national rental vacancy rate would have recorded a rise for the month of July as there were vacancy increases in most other capital cities and in many regional locations. That said, the rental market by and large remains very tight. And now, with the falls in CBD rental vacancies rates to well below average, we have evidence that the rise in overseas arrivals is starting to put some additional demand pressure in certain pockets of the rental market. We will wait to see if the increased immigration demand creates pressure elsewhere.

Meanwhile, rents continue to sharply rise in most locations, albeit SQM is now recording falls in rents for Canberra, Hobart and Darwin, which will at least provide some relief to local tenants.”

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