National Vacancy Rates Decline Marginally in May

The national residential rental vacancy rate declined marginally in May 2019 to 2.2%, a decrease from 2.3% in April.

The total number of vacancies Australia-wide is now at 75,093 properties for rent, a decrease of 2,571 over the month but up 5,941 dwellings over the past 12 months.

Most states recorded minor declines ranging from 0.1% to 0.3%.

Darwin and Sydney have the highest vacancy rates in the country, both at 3.3%.

A 3.0% vacancy rate is what would normally be considered a balanced market.

Darwin declined by 0.3% and Sydney’s decline was 0.1%.

Perth’s vacancy rate is not far behind at 3.1%, having dropped 0.1%.

Hobart’s vacancy rate decreased from 0.6% to 0.5% in May and continues to record the lowest vacancy rate in the country.

City	May 2018 Vacancies	May 2018 Vacancy Rate	April 2019 Vacancies	April 2019 Vacancy Rate	May 2019 Vacancies	May 2019 Vacancy Rate
Sydney	17,164	2.5%	23,837	3.4%	23,796	3.3%
Melbourne	7,676	1.4%	10,565	1.8%	10,349	1.8%
Brisbane	9,331	2.9%	8,792	2.6%	8,133	2.4%
Perth	8,235	4.1%	6,568	3.2%	6,457	3.1%
Adelaide	2,468	1.3%	2,249	1.2%	2,126	1.1%
Canberra	498	0.8%	811	1.2%	785	1.2%
Darwin	1,051	3.5%	1,117	3.6%	1,038	3.3%
Hobart	211	0.7%	185	0.6%	143	0.5%
National	69,152	2.1%	77,664	2.3%	75,093	2.2%

Key Points

National residential vacancy rates decreased to 2% in May 2019, from 2.3% in April.
Darwin and Sydney have recorded the highest of all capital cities, both at 3%.
Perth is not far behind with a vacancy rate of 1%, a decrease from 3.3% in April.
Capital city asking rents decreased by 2% for both units and for houses for the week ending 12 June to record asking rents of $553 per week for houses and $441 per week for units.

The month of May recorded a marginal change in rental vacancies, overall.

However the standouts for me were the falls in vacancy rates for Brisbane and Perth.

I think the rental market is decidedly turning in favour for landlords in these two cities.

Both cities also recorded fairly strong increases in asking rents for the month.

Indeed, Perth is now recording a 6% rise in asking rents for houses over the past 12 months.

With no expected material increase in new dwellings, I believe the rental market will continue to tighten from here for the two cities.

Asking Rents

Capital city asking rents decreased by 0.2% for both units and for houses for the week ending 12 June 2019 to record asking rents of $553 per week for houses and $441 per week for units.

In comparison, over the 12 months, asking rents for houses increased 0.4% but declined 0.7% for units.

Sydney’s asking rent for units and houses have both continued to decline marginally by 0.1% for houses and 0.5% for units to 12 June.

Over 12 months, the decline has been 3.6% for house rents and 3.8% for units.

Adelaide, Darwin and Hobart were the only states to experience increases in weekly rents for both houses and units.

Adelaide’s house rents increased 1.0% and units by 1.8%, Darwin’s house rents increased by 3.0% (the highest among all states) and units increased by 0.1%.

Hobart’s house rents increased 1.9% and units increased by 3.7% (the highest among all states).

SQM Research Weekly Rents Index
Week ending: 12 Jun 2019		Rent	Change on prev week	Rolling month % change	12 month % change
Sydney	All Houses	689.2	-2.2	-0.1%	-3.6%
Sydney	All Units	502.8	-0.8	-0.5%	-3.8%
Melbourne	All Houses	540.0	-0.0	-0.4%	2.0%
Melbourne	All Units	424.0	0.0	0.4%	3.0%
Brisbane	All Houses	459.7	0.3	0.3%	2.2%
Brisbane	All Units	372.1	0.9	-0.3%	0.8%
Perth	All Houses	448.9	-1.9	0.4%	6.5%
Perth	All Units	336.2	-0.2	-0.3%	3.6%
Adelaide	All Houses	395.5	1.5	1.0%	4.2%
Adelaide	All Units	308.5	2.5	1.8%	2.7%
Canberra	All Houses	618.2	-0.2	-1.0%	-2.1%
Canberra	All Units	462.6	3.4	1.5%	2.6%
Darwin	All Houses	512.7	8.3	3.0%	-4.8%
Darwin	All Units	370.9	-0.9	0.1%	-7.9%
Hobart	All Houses	435.1	5.9	1.9%	8.8%
Hobart	All Units	388.6	7.4	3.7%	10.9%
National	All Houses	441.0	1.0	-0.5%	1.6%
National	All Units	370.0	-3.0	1.9%	3.1%
Cap City Average	All Houses	553.0	-2.0	-0.2%	0.4%
Cap City Average	All Units	441.0	0.0	-0.2%	-0.7%

Source: www.sqmresearch.com.au

About Louis Christopher

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.
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