September vacancy rates remain constant at 0.9%

SQM Research has revealed national residential property rental vacancy rates have remained constant at 0.9% in September 2022. This represents the lowest national rental vacancy rate since 2006.

The total number of rental vacancies Australia-wide now stands at 33,813 residential properties, which is a slight increase from 32,948 in August. Sydney and Melbourne vacancy rates remained constant at 1.3% and 1.4% and Canberra increased from 0.9% to 1%. In the smaller capital cities, Brisbane, Perth, Adelaide, Darwin and Hobart, vacancy rates sat well below 1.0% and all with the exception of Darwin recorded a rise in vacancies over September.

Vacancy rates in the Melbourne CBD rose slightly to 2.3%, Sydney CBD remained constant at 3.1% and Brisbane CBD rose 2%.

Rents

Over the past 30 days to 12 October 2022, capital city asking rents rose by another 1.4% with the 12-month rise standing at 21.8%. While broader national rents, taking into accounts all regions, rose by 14.7% for the same 12-month period.

The national median weekly asking rent for a dwelling is recorded at $530.5 a week. Sydney recorded the highest weekly rent for a house at $854.92 a week. While Adelaide units offer the best rental affordability of all capital cities at $495.46 a week.

Louis Christopher, Managing Director of SQM Research said: While the rental vacancy rate remained steady at 0.9%, there was actually a slight increase in vacancies over the month driven by a rise in new rental listings compared to August. We note there was also a rise in rental vacancies within the Sydney, Melbourne, and Brisbane CBDs. Overall, the rental market remains extraordinarily tight and so it is little surprise to note yet another month of asking rent increases. Over the past 30 days we have combined national asking rents up by a further 1%.

Going forward, history tells us when we reach the late spring, early summer period, we could see a seasonal increase in vacancies. However there remains a structural issue with the rental market for which increases in construction of new dwellings will only resolve.”