National vacancy rate dips in September to 2.1 percent: SQM Research

National vacancy rate dips in September to 2.1 percent: SQM Research
National vacancy rate dips in September to 2.1 percent: SQM Research

Data released by SQM Research has revealed the national residential vacancy rate edged lower to 2.1% in September 2019, down from 2.2% in August, with the number of vacancies dropping in most cities. 

The SQM Research data suggest the number of vacancies Australia-wide sat at 71,404 properties.

Sydney’s vacancy rate dropped to 3.2% in from 3.4% in August with 22,762 properties available for rent.

Melbourne’s vacancy rate was steady at 2.0% with 11,599 rental properties available while in Brisbane, the vacancy rate fell to 2.3% in September from 2.5% with 7,880 properties available for rent.

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 National vacancy rate dips in September to 2.1 percent: SQM Research  

Source: SQM Research

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. 

Canberra’s rental market remained tight, with the vacancy rate falling to 1.0%, down from 1.2%.

Hobart’s rate rose was steady at 0.6%.

Perth’s vacancy rate edged lower to 2.7% from 2.9% in August, but is well down from 3.6% a year ago.  

Darwin’s vacancy rate was steady at 2.9%, but well down from 3.6% a year ago. Adelaide's fell slightly to 0.9% from 1.0%.

Louis Christopher, Managing Director of SQM Research, said: “It was a better month for leasing in August, especially in the cities of Brisbane, Perth, Adelaide and Canberra.

 “Sydney also had a relatively good month as well, but vacancies in Sydney still remain elevated and are still predicted to rise before the year is over. Perth and Brisbane are likely to continue to record falls in vacancies over the short to medium term due to current low dwelling completion activity verses increased underlying demand.”

Asking Rents

Despite the rise in vacancies, capital city asking rents for houses were steady over the month to 12 October 2019 at $544 a week.

Unit asking rents, however, fell 0.7% to $435 a week. Over the year, asking rents for houses rose fell 1.4% while unit asking rents slipped 0.5%. 

Despite the upward pressure on the vacancy rate and falling rents in Sydney, the asking rent for a three-bedroom house in Sydney remains the highest nationwide at $672 a week and $496 a week for two-bedroom units.

Asking unit rents were down 0.3% in Sydney over the month while asking house rents fell 0.6%.

Asking rents in Melbourne for houses rose 2.0% over the month to $527 a week while asking rents for units fell 1.0% to $411.

SQM Research Weekly Rents Index

Week ending
12 Oct 2019

Rent

Chg on
prev wk

Rolling month
% chg

12 mth
% chg

Sydney

All Houses

671.6

-0.6  

-0.7%  

-6.0%  

All Units

496.3

-0.3  

-0.3%  

-3.2%  

Melbourne

All Houses

527.0

2.0  

0.4%  

0.5%  

All Units

411.0

-1.0  

-1.8%  

1.2%  

Brisbane

All Houses

462.4

-1.4  

-0.8%  

2.4%  

All Units

379.2

-0.2  

0.3%  

2.6%  

Perth

All Houses

443.0

0.0  

0.6%  

4.4%  

All Units

336.7

0.3  

-0.3%  

4.8%  

Adelaide

All Houses

396.5

-0.5  

-0.7%  

2.4%  

All Units

309.6

0.4  

-0.8%  

3.6%  

Canberra

All Houses

615.2

2.8  

2.0%  

-1.4%  

All Units

462.1

-0.1  

0.6%  

4.4%  

Darwin

All Houses

519.1

-4.1  

1.2%  

2.8%  

All Units

381.6

-0.6  

0.4%  

-3.8%  

Hobart

All Houses

435.4

-2.4  

-1.7%  

2.3%  

All Units

403.6

4.4  

-2.1%  

11.7%  

National

All Houses

442.0

-1.0  

0.0%

0.2%  

All Units

363.0

-2.0  

-0.8%  

2.3%  

Cap City Average

All Houses

544.0

2.0  

0.0%

-1.4%  

All Units

435.0

0.0

-0.7%  

-0.5%  

Source: www.sqmresearch.com.au

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Sqm Research Vacancy Rates

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