National vacancy rates increase marginally in June: SQM Research
The national residential rental vacancy rate increased in June to 2.3%, an increase from 2.2% in May, according to data from SQM Research.
The total number of vacancies Australia-wide is now at 78,690, an increase of 3,597 over the month and up 2,933 dwellings over the past 12 months.
The rise was driven by Sydney, where vacancy rates have risen to 3.5%, the highest they have been since 2005. There are now nearly 25,000 vacant dwellings in the capital.
Melbourne also recorded a 0.2% increase over the month, taking their rental vacancy to 2%.
Darwin was the only capital city to record a decrease of 0.2% to 3.1% in vacancy rates. The only other capital with a vacancy rate over 3% is Perth (3.2%).
Hobart’s vacancy rate remains steady at 0.5% and continues to record the lowest in the country with just 161 vacancies.
City | June 2018 Vacancies | June 2018 Vacancy Rate | May 2019 Vacancies | May 2019 Vacancy Rate | June 2019 Vacancies | June 2019 Vacancy Rate |
Sydney | 19,572 | 2.8% | 23,796 | 3.3% | 24,931 | 3.5% |
9,035 | 1.6% | 10,349 | 1.8% | 11,720 | 2.0% | |
Brisbane | 9,886 | 3.0% | 8,133 | 2.4% | 8,526 | 2.5% |
Perth | 8,426 | 4.1% | 6,457 | 3.1% | 6,732 | 3.2% |
Adelaide | 2,726 | 1.5% | 2,126 | 1.1% | 2,310 | 1.2% |
Canberra | 565 | 0.9% | 785 | 1.2% | 847 | 1.3% |
Darwin | 1,062 | 3.5% | 1,038 | 3.3% | 965 | 3.1% |
Hobart | 221 | 0.7% | 143 | 0.5% | 161 | 0.5% |
National | 75,757 | 2.3% | 75,093 | 2.2% | 78,690 | 2.3% |
Source: SQM Research
Managing Director of SQM Research, Louis Christopher said, “The increase in rental vacancies in June tends to be a seasonal rise for the start of winter however Sydney’s increases goes beyond seasonal factors and so our expectation remains that Sydney will reach a 4% vacancy rate before 2019 is completed.”
“Melbourne is also likely to record more rises in rental vacancies as newly completed dwellings purchased as ‘off-the-plan’ in the last boom, enter the rental market now.”
“In spite of the rise in vacancies this month, Brisbane, Adelaide and Hobart’s rental market is in favour for landlords as in these cities have also recorded moderate increases in asking rents for the month and continue to record muted dwelling completions.”
Asking Rents
Capital city asking rents declined 0.4% for houses but remained steady for units for the week ending 12 July 2019 to record asking rents of $551 per week for houses and $441 per week for units.
In comparison, over the 12 months, asking rents for houses increased 0.4% but declined 0.7% for units.
Sydney and Melbourne’s asking rents for houses and units both declined in July. Sydney rents dropped 0.5% for houses and 0.2% for units to 12 July and Melbourne’s drop was 0.9% for houses and 0.2% for units.
Brisbane, Adelaide and Hobart were the only states to experience increases in weekly rents for both houses and units.
Adelaide’s house rents increased 1.1% and units by 0.4%, Brisbane’s house rents increased by 1.0% units increased by 0.7%.
Hobart’s house rents increased 3.6% and units increased by 4.9% (the highest among all states)
SQM Research Weekly Rents Index | |||||
Week ending: 12 July 2019 | Rent | Change on | Rolling month | 12 month | |
All Houses | 685.9 | 2.1 | -0.5% | -3.3% | |
All Units | 501.7 | -0.7 | -0.2% | -3.8% | |
All Houses | 534.9 | -0.9 | -0.9% | 2.4% | |
All Units | 423.2 | 0.8 | -0.2% | 2.8% | |
All Houses | 464.5 | 1.5 | 1.0% | 2.8% | |
All Units | 374.6 | 0.4 | 0.7% | 1.1% | |
All Houses | 435.7 | -3.7 | -2.9% | 2.6% | |
All Units | 339.3 | 1.7 | 0.9% | 4.1% | |
All Houses | 399.9 | 0.1 | 1.1% | 4.4% | |
All Units | 309.7 | 0.3 | 0.4% | 3.4% | |
All Houses | 624.0 | -2.0 | 0.9% | -1.1% | |
All Units | 461.5 | 0.5 | -0.2% | 5.0% | |
All Houses | 527.8 | -0.8 | 3.0% | -2.4% | |
All Units | 369.3 | 1.7 | -0.4% | -8.8% | |
All Houses | 450.6 | 9.4 | 3.6% | 13.0% | |
All Units | 407.8 | 4.2 | 4.9% | 17.4% | |
All Houses | 442.0 | 1.0 | 0.2% | 2.3% | |
All Units | 368.0 | 2.0 | -0.5% | 3.7% | |
All Houses | 551.0 | 2.0 | -0.4% | 0.4% | |
All Units | 441.0 | 0.0 | 0.0% | -0.7% | |
Source:www.sqmresearch.com.au
Key Points
- National residential vacancy rates increased in June 2019 to 2.3%, an increase from 2.2% in May
- Sydney has recorded the highest of all capital cities at 3.5% vacancy rate, and a decrease in weekly rents of 0.5% for houses and 0.2% for units.
- Hobart’s vacancy rate remains steady at 0.5% and continues to record the lowest vacancy rate in the country.
- Capital city asking rents declined 0.4% for houses but remained steady for units for the week ending 12 July 2019 to record asking rents of $551 per week for houses and $441 per week for units.