Sydney vacancy rate remains at 13-year high: SQM Research
Data released by SQM Research has revealed the national residential vacancy rate dipped to 2.2% in July 2018.
But the vacancy rate in Sydney remains at its highest level in 13 years, which has pushed down asking rents in the nation’s biggest city.
The number of vacancies Australia-wide sat at 72,458 properties.
Sydney’s vacancy rate was unchanged at 2.8% from June, the highest level since SQM started recording the data in 2005, and well up from 1.9% a year ago with 19,114 properties available for rent.
In contrast, to Sydney, Melbourne’s vacancy rate is much lower, just 1.6% in July, though unchanged from June and a year ago.
Brisbane is enjoying a sustained reduction in its vacancy rate, falling to 2.9% in July, down from 3.0% in June and 3.6% in July 2017. The decline in Brisbane follows five straight monthly declines in rental vacancies in the first half of 2018.
Canberra’s vacancy rate slipped to 0.8%, down from 0.9% in June and 1.1% a year ago. Hobart's vacancy rate was steady at 0.7% in July, but up from 0.5% a year ago. Adelaide’s vacancy rate fell to 1.3% from 1.5%, and down from 1.8% a year ago.
Darwin’s vacancy rate fell to 3.4% from 3.5% in June. Perth’s vacancy rate slipped to 4.0%, and is well down from 5.2% a year earlier as the oversupply of rental properties eases in that city.
Louis Christopher, Managing Director of SQM Research, said asking rents had eased in Sydney given the greater supply of rental accommodation – and he expects rents to keep falling.
“The supply of rental accommodation, especially of new units, has jumped following the building boom in the city. Sydney has also experienced slowing population growth, which has helped to push asking rents lower, as landlords increasingly struggle to fill properties. In contrast, the tight rental market in Hobart is continuing to push rents higher,” Christopher said.
Asking Rents
Capital city asking rents for houses fell over the month to 12 August 2018 by 0.2% to $548 a week. Unit asking rents dropped 0.9% to $440 a week. Over the year, asking house rents rose just 0.2% and unit rents rose a modest 0.5%.
The asking rent for a three-bedroom house in Sydney is the highest nationwide at $707 a week, but fell 0.3% over the month to 12 August. Asking unit rents now stand at $515, down 1.2%. Canberra asking house rents stand at $626 a week and $437 for units. Hobart’s unit asking rents jumped 3.7% over the month to 12 August to $360 a week while house rents rose 0.4% to $400.
