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Vacancy Rates Continued to Decrease Over February | SQM Research - featured image
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Vacancy Rates Continued to Decrease Over February | SQM Research

The national vacancy rates continued to decrease and now state at 1.0%.

From January to February the decrease was by 0.1%.

The total number of rental vacancies Australia-wide now stands at 30,161 residential properties, which is a decrease from 32,108 in January.

Only Perth and Adelaide remained stable, however, other major cities recorded vacancy rates fell: Sydney, Canberra, Darwin, Hobart by 0.2% and Melbourne, Brisbane by 0.1%.

Rental Property

Vacancy rates in the Sydney CBD, Melbourne CBD and Brisbane CBD decreased to 3.3%, 2.7% and 2.1% over February.

Vacancy Rates - February 2024

City Feb 2023 Vacancies Feb 2023 Vacancy Rate Jan 2024 Vacancies Jan 2024 Vacancy Rate Feb 2024 Vacancies Feb 2024 Vacancy Rate
Sydney 9,301 1.3% 9,114 1.3% 8,137 1.1%
Melbourne 5,545 1.1% 5,589 1.1% 5,288 1.0%
Brisbane 2,802 0.8% 3,327 1.0% 3,213 0.9%
Perth 839 0.4% 775 0.4% 776 0.4%
Adelaide 821 0.5% 783 0.5% 830 0.5%
Canberra 1,069 1.8% 1,061 1.7% 936 1.5%
Darwin 378 1.4% 445 1.7% 395 1.5%
Hobart 237 0.9% 278 1.0% 326 1.2%
National 31,040 1.0% 32,108 1.1% 30,161 1.0%

Rents

Over the past 30 days to 12 March 2024, capital city asking rents for all units rose by a further 1.2% with the 12-month rise standing at 11.4%.

Darwin and Hobart recorded declines in rents of 2.1% and 0.1% respectively.

Melbourne recorded the fastest increase of 1.5%.

The national median weekly asking rent for a dwelling is recorded at $721.00 per week.

Sydney recorded the highest weekly rent for a house at $1,054.16 per week. While Adelaide units again offer the best rental affordability of all capital cities at $457.72 per week.

Sydney

Property Type Rent Δ Week Δ Month Δ 12 Months
All Houses $1,054.16 4.84 1.3% 11.9%
All Units $703.58 2.42 1.5% 10.3%
Combined $846.03 3.40 1.4% 11.1%

Source: SQM Research

Melbourne

Property Type Rent Δ Week Δ Month Δ 12 Months
All Houses $741.14 0.86 0.5% 15.1%
All Units $552.70 2.30 2.3% 10.3%
Combined $630.36 1.71 1.5% 12.6%

Brisbane

Property Type Rent Δ Week Δ Month Δ 12 Months
All Houses $713.73 -3.73 -0.7% 6.9%
All Units $571.40 2.60 0.7% 10.9%
Combined $649.68 -0.88 -0.1% 8.5%

Perth

Property Type Rent Δ Week Δ Month Δ 12 Months
All Houses $778.11 -1.11 -0.2% 17.4%
All Units $580.10 5.90 1.7% 16.9%
Combined $695.35 1.82 0.4% 17.3%

Adelaide

Property Type Rent Δ Week Δ Month Δ 12 Months
All Houses $638.38 -0.38 -0.1% 12.9%
All Units $457.72 -3.72 1.4% 12.7%
Combined $576.18 -1.53 0.3% 13.0%

Canberra

Property Type Rent Δ Week Δ Month Δ 12 Months
All Houses $751.84 -0.84 0.1% -1.6%
All Units $575.89 1.11 1.0% 2.1%
Combined $656.44 0.22 0.5% 0.1%

Darwin

Property Type Rent Δ Week Δ Month Δ 12 Months
All Houses $719.33 0.67 -1.6% 0.7%
All Units $492.08 -0.08 -2.6% 9.4%
Combined $583.97 0.23 -2.1% 5.0%

Hobart

Property Type Rent Δ Week Δ Month Δ 12 Months
All Houses $543.75 0.25 0.3% -1.3%
All Units $463.96 1.04 -0.9% -3.5%
Combined $511.69 0.57 -0.1% -2.1%

 

National Rental Vacancy Rates

Property Type Rent Δ Week Δ Month Δ 12 Months
All Houses $688.00 0.00 0.0% 8.3%
All Units $532 -4.00 0.4% 8.6%
Combined $615.48 -1.86 0.2% 8.5%

 

Average Capital City Rental Vacancy Rates

Property Type Rent Δ Week Δ Month Δ 12 Months
All Houses $834 2.00 0.8% 12.1%
All Units $622 3.00 1.6% 10.5%
Combined $721.10 2.53 1.2% 11.4%

Final note...

Our rental market update today reveals a further decline in rental vacancy rates across the nation.

Most likely the fall in rental vacancies was driven by increased demand from tertiary students following the start of campus semesters for 2024.

As well as graduates entering the workforce for the first time.

It is a seasonal demand increase we see at the start of each and every year but is most certainly problematic due to the fact the current rental market remains in crisis.

Going forward, we believe vacancy rates are likely to decline again for the month of March as thus far weekly rental listings have fallen since the start of the current month.

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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