National Rental Vacancy Rates Decreased in July

The national residential rental vacancy rate recorded a decrease over the month from 2.2% in June to 2.1% in July 2020. 

The new financial year commenced with the total number of vacancies Australia-wide now at 71,760 vacant residential properties. Buy Home In Australia

This time last year, the national vacancy rate was slightly higher at 2.3%.

All capital cities recorded declines in vacancy rates over the month except for Melbourne which recorded a 0.1% increase to 3.1% for July.

Sydney currently has the highest vacancy rate in the nation at 3.6%, having declined by 0.2%.

Hobart’s vacancy rate is the lowest in the nation at 0.7%, having declined by 0.2% over the month.

Darwin recorded the largest decline in rental vacancy rate of 0.4% to now record a low vacancy rate of 1.4%.

City July 2019 Vacancies July 2019
Vacancy Rate
June 2020 Vacancies June 2020
Vacancy Rate
July 2020 Vacancies July 2020
Vacancy Rate
Sydney 24,869 3.5% 27,710 3.8% 26,506 3.6%
Melbourne 11,674 2.0% 18,116 3.0% 18,746 3.1%
Brisbane 8,154 2.4% 8,127 2.4% 7,593 2.2%
Perth 6,303 3.0% 3,272 1.5% 2,803 1.3%
Adelaide 2,034 1.1% 1,992 1.0% 1,809 0.9%
Canberra 747 1.1% 731 1.1% 653 1.0%
Darwin 913 2.9% 575 1.8% 453 1.4%
Hobart 147 0.5% 272 0.9% 212 0.7%
National 76,338 2.3% 77,132 2.2% 71,760 2.1%

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.

Some capital city CBD locations have also recorded declines (from their record highs) in vacancy rates over the month, namely Sydney CBD dropping to 13.2%, down from 13.8% in June; Brisbane CBD’s vacancy rate decreased from 14.0% in June to 13.0%. Melbourne’s CBD remained stable at 8.8%.

However, Adelaide CBD has increased to 7.6% from 7.1% in June and Perth CBD is now up from 5.3% to 5.5%.

Asking Rents

Over the month, Capital City average asking rents decreased 0.6% for houses and 0.9% for units for the week ending 4 August 2020 to record asking rents of $534 per week for houses and $419 per week for units.

Sydney, Melbourne and Brisbane recorded declines in asking rents for both houses and units over the month.

Melbourne recorded the highest decrease of 1.4% for both houses and units.

Perth, Adelaide, Canberra, Darwin and Hobart recorded increases in house and unit asking rents.

Perth recorded the highest increase in asking rents for houses by 3.2% and Hobart’s unit market increased by 5.9%.

Year on year, Sydney, Melbourne, Darwin and Hobart also recorded declines in asking rents for both houses and units, Sydney in particular recording a high 7.8% decline for houses and 6.8% decline for units in July 2019.

SQM Research Weekly Rents Index
Week ending: 4 August 2020 Rent Change on
prev week
Rolling month
% change
12 month
% change
Sydney All Houses 634.0 -4.0 -1.0% -7.8%
All Units 466.3 -1.3 -1.2% -6.8%
Melbourne All Houses 520.8 -2.8 -1.4% -1.3%
All Units 397.3 -1.3 -1.4% -5.8%
Brisbane All Houses 466.2 -1.2 -0.3% 0.9%
All Units 380.0 0.0 -0.2% 1.6%
Perth All Houses 469.5 0.5 3.2% 8.6%
All Units 352.8 1.2 0.1% 3.8%
Adelaide All Houses 413.2 0.8 0.6% 3.7%
All Units 318.4 0.6 0.7% 2.1%
Canberra All Houses 627.7 8.3 1.4% 2.2%
All Units 474.1 0.9 0.4% 3.0%
Darwin All Houses 490.6 5.4 1.3% -5.4%
All Units 359.7 -3.7 0.8% -3.1%
Hobart All Houses 441.0 3.0 1.1% -1.6%
All Units 392.5 10.5 5.9% -1.4%
National All Houses 457.0 2.0 2.2% 3.9%
All Units 367.0 0.0 0.0% 0.0%
Cap City Average All Houses 534.0 -4.0 -0.6% -2.4%
All Units 419.0 -1.0 -0.9% -4.6%

Source: www.sqmresearch.com.au

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.

Commentary

Rental vacancy rates for most capital cities recorded a decline over the course of July. Rent

We are now observing a clear trend of reduced rental vacancies in outer suburban locations and regional locations around Australia.

However, when looking into the numbers it is clear there are still very elevated levels of rental vacancies in the inner-city locations.

We believe there has been a move towards outer regional living and away from high-density areas.

This very likely has been as a result of fears surrounding Coronavirus and the ability for many employees (particularly in the corporate sector) to work remotely.

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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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