National Rental Vacancy Rates Decline in February

The national residential rental vacancy rate declined in February 2020 to 2.0% from 2.1% recorded in January, with the total number of vacancies Australia-wide now at 68,079 vacant residential properties.

Most states recorded minor declines in vacancy rates with the exception of Hobart which recorded a 0.3% increase.  Adelaide remained stable at 1.0% vacancy rate. Buy Home In Australia

Sydney has surpassed Darwin recording the highest vacancy rate in the country at 2.9%, having dropped 0.3% basis points. Darwin sits at 2.7% with a 0.5% drop on last month.  

Canberra’s vacancy rate has declined to 1.0% and Melbourne is now 1.9%.

The year on year comparison revealed a similar decline when the national rental vacancy rate in February 2019 was 2.2% compared to 2.0% recorded for February 2020.

Only Melbourne, Canberra and Hobart recorded higher vacancy rates compared to this time last year.

Key Points

  • National residential rental vacancy rate decreased in February 2020 to 0% from 2.1% recorded in January, with the total number of vacancies Australia-wide now at 68,079 vacant residential properties.
  • Most states recorded minor decreases in vacancy rates with the exception of Hobart which recorded a 3% increase. Adelaide’s vacancy rate remained stable at 1.0%.
  • Sydney has surpassed Darwin recording the highest vacancy rate at 9%.
  • Over the month, Capital city asking rents decreased 2% for houses and 0.2% for units for the week ending 12 March 2020 to record asking rents of $562 per week for houses and $441 per week for units.
City Feb-19
Vacancies
Feb-19
Vacancy Rate
Jan-20
Vacancies
Jan-20
Vacancy Rate
Feb-20
Vacancies
Feb-20
Vacancy Rate
Sydney 22,396 3.2% 22,707 3.1% 20,815 2.9%
Melbourne 9,818 1.7% 12,229 2.1% 11,085 1.9%
Brisbane 8,611 2.6% 8,334 2.4% 7,530 2.2%
Perth 6,170 3.0% 4,337 2.1% 4,323 2.0%
Adelaide 2,197 1.2% 1,929 1.0% 1,953 1.0%
Canberra 502 0.8% 947 1.4% 651 1.0%
Darwin 1,161 3.7% 1,028 3.2% 879 2.7%
Hobart 133 0.4% 182 0.6% 267 0.9%
National 72,317 2.2% 72,422 2.1% 68,079 2.0%

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.

Please go to our Methodology page for more information on how SQM’s vacancies are compiled.

February marks the start to the new year in the property industry and gives us a clearer picture of the rental market.

The decline in vacancy rates is a reflection of a seasonal increase in rental demand plus ongoing decline in dwelling completions and the ongoing increase in population.

We are likely to record further declines in rental vacancy rates as 2020 progresses unless the country enters into a prolonged economic depression.

Asking Rents

Over the month, Capital City asking rents decreased 1.2% for houses and 0.2% for units for the week ending 12 March 2020 to record asking rents of $562 per week for houses and $441 per week for units. 40327469_l

In comparison over the 12 months, asking rents increased 0.4% for houses and remained steady for units.

Sydney, Melbourne, Adelaide and Canberra all recorded decreases in asking rents for both houses and units over the month.

Perth was the only city to record rent increases for both houses and units, 0.1% for houses and 2.5% for units.

Over the month, Darwin and Hobart managed small increases for house rents of 1.2% and 0.5% respectively but unit rents has fallen by 2.4% for Darwin and 1.4% for Hobart.

Brisbane recorded decreases in house asking rents of 0.4% but unit asking rents remained stable.

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Louis Christopher

About

Louis is recognised as one of Australia’s most respected and impartial research property analyst. He has extensive knowledge and experience of property and is regularly quoted in the media on his insights and is director of SQM Research.
Visit www.SQMResearch.com.au


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