Vacancy rates hold steady at 1.3%

In August 2024, Sydney’s rental vacancy rate slightly dropped to 1.6%, now there are 11,893 rental dwellings vacant. Melbourne’s vacancy rate slightly increased by 0.1% and now shows the same index as Sydney 1.6%, with 8,733 vacant dwellings. Compared to August 2023, over the past 12 months, Sydney’s vacancy rate increased, the same as Melbourne’s rate by 0.2% and 0.3% respectively.

Canberra again recorded the highest rental vacancy rate of any state or territory at 2.1%, however, the index has come back to 2.1% as of June 2024 after an increase in July 2024. Perth and Darwin showed the same vacancy rates, 0.7% for both. Adelaide experienced the lowest vacancy rates at 0.6%.

Hobart continued to decline, however, it noticeably slowed down. The vacancy rate is now 1.1%.

The total number of rental vacancies across Australia now stands at 39,665 residential properties, a slight decrease from the 39,701 vacancies recorded in July 2024, but still above the 35,425 vacancies in August 2023. Nationally, the vacancy rate has remained stable at 1.3% from July 2024, and over the past year increased by 0.1%. Vacancy rates in the Sydney CBD saw an increase from 4.6% in August 2023 to 5.1% in August 2024. Melbourne CBD saw a slight increase from 5.2% in August 2023 to 5.3% in August 2024. Brisbane CBD continued to experience strong demand with a low vacancy rate of 2.5%. Canberra CBD experienced dramatic decrease from 4.0% in August 2023 to 3.5% in August 2024.

SQM’s calculations of vacancies are based on online rental listings that have been advertised for three weeks or more compared to the total number of established rental properties. SQM considers this to be a superior methodology compared to using a potentially incomplete sample of agency surveys or merely relying on raw online listings advertised. Please go to our Methodology page for more information on how SQM’s vacancies are compiled.

Rents

Over the past 30 days leading up to the 12th of September 2024, capital city asking rents experienced varied changes. Brisbane and Perth also saw declines, with Brisbane’s combined rents falling by 0.8%, Perth’s falling by 0.5%. Hobart and Canberra also showed a decrease of 0.6% and 1.2% respectively, where Canberra’s combined rents fall is the biggest among the cities.

In contrast, Sydney recorded an increase in house rents by 0,6% to $1,031.09 per week. Cities like Adelaide and Darwin saw increases, with Adelaide’s house rents rising by 0.9%.

The national median weekly rent for a dwelling is now $719.80, with Darwin showing the most significant monthly growth, particularly in house rents, which surged by 9.6%.

Louis Christopher, Managing Director of SQM Research said:  “National rental vacancy rates fell slightly in August, and we are now expecting further falls in vacancies through spring, however, this will be just a seasonal change and so we are not anticipating a reacceleration of rents, which have eased in recent month.

Overall, the national rental market remains in severe shortage and barring some exceptions, is not expected to materially soften out of the rental crisis for some years. However, much of the structural rental shortage has now been priced into the rental market and so I do believe the days of 10-20% plus annual rental increases have come to an end.”