Vacancy rates decline in January across most capital cities

Vacancy rates decline in January across most capital cities
Vacancy rates decline in January across most capital cities

Data released by SQM Research revealed the national residential vacancy rate predictably declined to 2.2% in January, down from 2.5% in December 2018.

SQM had the total number of vacancies Australia-wide declining to 72,574 – some 9,984 fewer properties are now available for rent in December 2018.

All capital cities, except Hobart experienced a decline in their vacancy rates in January with Darwin currently having the highest vacancy rate of all capital cities at 3.8%, down from 0.5% on December’s vacancy of 4.3%.

Although Hobart increased its vacancy rate marginally by 0.1%, it still remains the lowest of all capital cities at 0.5% for January 2019.

Sydney’s vacancy rate, although declining, is still currently the second highest of all capital cities at 3.2% with 22,426 properties available for rent. 

City

Jan-2018 Vacancies

Jan-2018 Vacancy Rate

Dec-2018 Vacancies

Dec-2018 Vacancy Rate

Jan-2019 Vacancies

Jan-2019 Vacancy Rate

Adelaide

2,793 

1.5%

2,383 

1.3%

2,141 

1.1%

Perth

8,909 

4.4%

6,935 

3.4%

6,121 

3.0%

Melbourne

9,744 

1.8%

12,619 

2.2%

10,564 

1.9%

Brisbane

11,505 

3.6%

10,519 

3.2%

8,911 

2.7%

Canberra

569 

0.9%

829 

1.3%

594 

0.9%

Sydney

15,775 

2.3%

25,177 

3.6%

22,426 

3.2%

Darwin

941 

3.1%

1,317 

4.3%

1,193 

3.8%

Hobart

126 

0.4%

121 

0.4%

144 

0.5%

National

74,113 

2.3%

82,558 

2.5%

72,574 

2.2%

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. 

The managing director of SQM Research, Louis Christopher said, the decline in vacancies is expected in January as December usually has a higher seasonal listings.

"It still appears to be a tenants market in Darwin and Sydney where vacancy rates are high at 3.8% and 3.2% respectively," he said. 

"Going forward, we expect another seasonal decline in vacancies for the month of February.

"However for the year our expectation is national vacancy rates will rise at the national level, driven by rises in Sydney." 

The decline in vacancies saw asking rents for houses in capital city increase 0.2% over the month to 12 February 2019 to $560 a week.

Unit asking rents also increased 0.7% to $442 a week. Over the year, asking rents for houses declined 0.4% while unit asking rents remained steady.

Hobart recorded the highest weekly rental increase of 4.8% for units but house weekly rents declined 0.6% declined. Just 12 months ago, Hobart’s house asking rent had increased by 4.3%.

Sydney, Melbourne and Perth recorded marginal increases in both house and unit asking rents over the month to 12 February 2019.

Whilst Darwin, Brisbane and Adelaide recorded declines in weekly rents for both houses and units.  Canberra’s house rentals increased 1.6% but unit asking rents declined 1.7%.

Click here to enlarge:

Vacancy rates decline in January across most capital cities

SQM's methodology page explains how SQM’s vacancies are compiled.

Tags: 
Sqm Research Vacancy Rate

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