National residential vacancy rates steady in July: SQM Research

Data released by SQM Research today has revealed the national residential rental vacancy rate remained steady in July 2019 at 2.3% from June.

The total number of vacancies Australia-wide is now at 76,346 vacant residential properties, a decrease of 2,344 over the month but up 3,888 dwellings over the past 12 months.

Brisbane and Adelaide recorded minor decreases of 0.1% in vacancy rates, whilst Perth, Canberra and Darwin recorded a 0.2% decrease over the month.

Sydney, Melbourne and Hobart’s vacancy rate remained steady over the month.

SQM found that Sydney continues to have the highest vacancy rate in the country at 3.5%, this time last year the rate was lower at 2.8%. Melbourne remained at 2.0% in July, increasing from 1.6% 12 months ago.

Hobart’s vacancy rate was also steady in July and continues to be the lowest in the country at 0.5%.

The Managing Director of SQM Research, Louis Christopher said, “while rental vacancy rate held steady in Sydney and Melbourne, they fell in most other cities over July."

"Perth continues to record a recovery in its rental market which should eventually feed through into a rise in dwelling prices. After a false dawn, Darwin also appears to be recording tentative signs of a rental recovery."

"Going forward, the expectation remains that Sydney and Melbourne will record higher rental vacancy rates in the 2nd half of this year driven by ongoing high levels of dwelling completions from the tail of the last property boom,” he added.

Asking Rents

Capital city asking rents declined 0.5% for houses and 0.7% for units for the week ending 12 August 2019 to record asking rents of $546 per week for houses and $438 per week for units.

In comparison, over the 12 months, asking rents for houses declined 0.4% for houses and a 0.5% decline for units.

Sydney asking rents for houses declined in July by 0.6%, however houses increased by 0.2%. Canberra and Melbourne saw a decline in both houses and units to 12 August, with Melbourne rents dropping 1.9% for houses and 0.3% for units, whilst Canberra rents dropped 2.5% for houses and 0.4% for units.

Brisbane was the only capital city to record increases in weekly rents over the month for both houses and units at 0.1% for both.