Vacancy rates increased to 1.1% – capital city asking rents rise at a slower pace of 0.5%

SQM Research has revealed national vacancy rates have slightly increased to 1.1% over the month of April 2024.

This represents a rise from March when the national rental vacancy rate was 1.0%.

The total number of rental vacancies Australia-wide now stands at 33,177 residential properties.

Sydney recorded a rental vacancy rate of 1.2% with 10,133 rental dwellings vacant, up from 1.1% recorded in the previous month. Melbourne recorded a steady rental vacancy rate of 1.1%.

Canberra recorded the highest rental vacancy rate out of any State and Territory highest at 1.7%. While Perth and Adelaide equally recorded the lowest vacancy rate at just 0.6%. Darwin recorded the largest change with rental vacancies falling from 1.4% in the previous month to 1.1% recorded in April.

Vacancy rates in the Sydney CBD, Melbourne CBD, Brisbane CBD, and Adelaide CBD all recorded rises in rental vacancies, indicating an easing of sorts in the inner city, student focused rental markets. While Canberra CBD, Perth CBD, Darwin CBD, Hobart CBD recorded steady to falling vacancy rates.

Rents

Over the past 30 days to the 12th of May 2024, the capital city asking rents recorded a softer rise compared to recent periods with capital city and national asking rents rising by just 0.5%. This increase represents one of the slower rises in market rents since the outbreak of the national rental crisis in 2021. Canberra and Hobart again recorded declines in rents of 0.9% respectively. Surprisingly Darwin recorded the fastest increase of 4.8%. The second highest increase was from Adelaide at 2.2% and next was Perth at 1.6%.

The national median weekly asking rent for a dwelling is recorded at $625 per week. Sydney continued to record the highest weekly rent for a house at $1,059 per week.

While Hobart continued to offer the best rental affordability for units rent of all capital cities at $459 per week. Louis Christopher, Managing Director of SQM Research said: “As stated in our last update, we have recorded a slight easing in rental vacancy rates for April, but the rental crisis is still, far from over at this stage. The immediate outlook is vacancy rates are set to rise somewhat into winter. This is the normal seasonality we get at this time of year so one should be a little careful about reading into these rises. Nevertheless, it might provide some minor relief to tenants who still have excessive difficulties in finding longer term rental accommodation around the country.

The full year outlook remains the same in that we expect overall tight vacancy rates to be with us for 2024, driven by a fall in dwelling completions relative to ongoing growing demand.”