SQM calculates highest ever number of Sydney landlords without tenants
The Sydney rental market has recorded the highest vacancy rate in at least 13 years according to SQM Research with 19,500 landlords seeking tenants.
Sydney’s rental vacancy rate rose to 2.8% in June with an estimated 19,572 residential rental dwellings sitting vacant and available for rent.
The vacancy rate rose from 2.5% recorded in May and 2% recorded in June 2017.
The 2.8% is the highest rental vacancy rate since at least 2005 when SQM Research commenced record keeping of rental listings.
Nationally, the residential rental vacancy rate rose to 2.3% in June (from 2.1% recorded in May) with the number of vacancies Australia-wide now sitting at 75,757 properties.
Most cities recorded a rise with Melbourne rising to 1.6%, Brisbane to 3.0%, Canberra to 0.9% and Adelaide rising to 1.5%. Rental vacancies remained steady in Perth (4.1%), Darwin (3.5%) and Hobart (0.7%)
It should be noted that there tends to be a seasonal rise in rental vacancies for the major capital cities during the month of June. However it is SQM’s view that the rise recorded in Sydney goes beyond seasonal factors.
City | June 2017 Vacancies | Vacancy Rate | May 2018 Vacancies | Vacancy Rate | June 2018 Vacancies | Vacancy Rate |
Adelaide | 3,251 | 1.8% | 2,468 | 1.3% | 2,726 | 1.5% |
Perth | 10,638 | 5.4% | 8,235 | 4.1% | 8,426 | 4.1% |
8,754 | 1.6% | 7,676 | 1.4% | 9,035 | 1.6% | |
Brisbane | 11,497 | 3.6% | 9,331 | 2.9% | 9,886 | 3.0% |
Canberra | 731 | 1.2% | 498 | 0.8% | 565 | 0.9% |
Sydney | 13,215 | 2.0% | 17,164 | 2.5% | 19,572 | 2.8% |
Darwin | 961 | 3.3% | 1,051 | 3.5% | 1,062 | 3.5% |
Hobart | 190 | 0.7% | 211 | 0.7% | 221 | 0.7% |
National | 78,314 | 2.5% | 69,152 | 2.1% | 75,757 | 2.3% |
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.
Capital city asking rents for houses fell over the month to 12 July 2018 by 0.4% to $549 a week. Unit asking rents remain steady at $444 a week. Over the year, asking house rents rose just 0.5%, while unit asking rents rose modestly by 0.9%.
While the asking rent for a three-bedroom house in Sydney remains the highest in the nation at $709 a week, rents fell 0.8% over the month to 12 July, with the upward trend in the vacancy rate easing pricing pressures. Asking unit rents in Sydney now stand at $522 a week, down by 0.2% over the month. Sydney was the only city to record falls in rents for the year with rents for houses down by 2.2% and units down by 0.1%
Canberra also recorded monthly falls in rents for both houses (0.1%) and units (2.5%) however rents are well up by 13% over the past 12 months for houses. Melbourne’s house rents fell by 1.3% for the month but unit rents rose marginally by 0.1%.
Brisbane, Darwin, Adelaide and Perth house rents continue to register small increases in the past 30 days. However, rents for units in Adelaide fell by 0.2%, making it the cheapest capital city to rent a unit at $299.60 a week. Adelaide is also the cheapest capital city to rent a house, with the asking rent sitting at $383.10 a week, although there is an increase of 0.9% for June.
SQM Research Weekly Rents Index | |||||
Week ending - 12 Jul 2018 | Rent | Change on | Rolling month | 12 month | |
Canberra | All Houses | 630.7 | -2.7 | -0.1% | 13.0% |
All Units | 439.6 | -1.6 | -2.5% | 6.6% | |
Sydney | All Houses | 709.2 | -0.2 | -0.8% | -2.2% |
All Units | 521.7 | -0.7 | -0.2% | -0.1% | |
Darwin | All Houses | 540.9 | 0.1 | 0.4% | 5.8% |
All Units | 405.0 | 0.0 | 0.5% | 1.9% | |
Brisbane | All Houses | 451.9 | 0.1 | 0.5% | 2.0% |
All Units | 370.4 | 0.6 | 0.3% | 0.8% | |
Adelaide | All Houses | 383.1 | 0.9 | 0.9% | 2.1% |
All Units | 299.6 | -0.6 | -0.2% | 3.5% | |
Hobart | All Houses | 398.6 | -0.6 | -0.3% | 8.5% |
All Units | 347.3 | -0.3 | -0.9% | 10.4% | |
All Houses | 522.6 | -0.6 | -1.3% | 2.2% | |
All Units | 411.8 | 0.2 | 0.1% | 2.6% | |
Perth | All Houses | 424.5 | 0.5 | 0.8% | 0.2% |
All Units | 326.1 | 0.9 | 0.5% | -0.4% | |
National | All Houses | 432.0 | -1.0 | -0.5% | 1.2% |
All Units | 355.0 | 1.0 | -1.1% | 1.7% | |
Cap City Average | All Houses | 549.0 | 1.0 | -0.4% | 0.5% |
All Units | 444.0 | 0.0 | 0.0% | 0.9% | |
