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.
- Also read:What a change in government means for Australia’s property market
- Also read:RBA tells workers to take a “real” pay cut to help the economy | Property Insiders [Video]
- Also read:Latest property price forecasts for 2022 revealed. What’s ahead in our housing markets in the next year or two?
- Also read:16 Brisbane suburbs that are cheaper now than 5 years ago
- Also read:Exploring the link between population growth and property prices
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% |
| All Units | 502.8 | -0.8 | -0.5% | -3.8% | |
| Melbourne | All Houses | 540.0 | -0.0 | -0.4% | 2.0% |
| All Units | 424.0 | 0.0 | 0.4% | 3.0% | |
| Brisbane | All Houses | 459.7 | 0.3 | 0.3% | 2.2% |
| All Units | 372.1 | 0.9 | -0.3% | 0.8% | |
| Perth | All Houses | 448.9 | -1.9 | 0.4% | 6.5% |
| All Units | 336.2 | -0.2 | -0.3% | 3.6% | |
| Adelaide | All Houses | 395.5 | 1.5 | 1.0% | 4.2% |
| All Units | 308.5 | 2.5 | 1.8% | 2.7% | |
| Canberra | All Houses | 618.2 | -0.2 | -1.0% | -2.1% |
| All Units | 462.6 | 3.4 | 1.5% | 2.6% | |
| Darwin | All Houses | 512.7 | 8.3 | 3.0% | -4.8% |
| All Units | 370.9 | -0.9 | 0.1% | -7.9% | |
| Hobart | All Houses | 435.1 | 5.9 | 1.9% | 8.8% |
| All Units | 388.6 | 7.4 | 3.7% | 10.9% | |
| National | All Houses | 441.0 | 1.0 | -0.5% | 1.6% |
| All Units | 370.0 | -3.0 | 1.9% | 3.1% | |
| Cap City Average | All Houses | 553.0 | -2.0 | -0.2% | 0.4% |
| All Units | 441.0 | 0.0 | -0.2% | -0.7% | |
Source: www.sqmresearch.com.au
