National Vacancy Rates Increase Marginally in December

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New data released by SQM Research has revealed the national residential rental vacancy rate increased marginally in December 2019 to 2.5% from 2.2% recorded in November, with the total number of vacancies Australia-wide now at 84,591 vacant residential properties. Fees To Look Out For When Buying Your First Property

The December 2018 vacancy rate was also 2.5%.

All states recorded marginal increases in vacancy rates with Sydney recording the highest at 3.6% followed by Darwin at 3.5% and Brisbane at 2.9%.  Hobart is the lowest of all capital cities at just 0.6%

Perth’s rental market is showing minor improvements with the vacancy rate remaining steady at 2.5% and asking rents increasing for both houses and units by 0.6% and 0.8% respectively.

CityDec-2018 VacanciesDec- 2018
Vacancy Rate
Nov-2019 VacanciesNov-2019
Vacancy Rate
Dec-2019 VacanciesDec-2019
Vacancy Rate
Sydney25,1773.6%24,2583.4%26,4153.6%
Melbourne12,6192.2%12,9632.2%14,5972.5%
Brisbane10,5193.2%8,6292.5%9,9312.9%
Perth6,9353.4%5,2002.5%5,2282.5%
Adelaide2,3831.3%1,8961.0%2,2031.1%
Canberra8291.3%7561.1%1,1121.7%
Darwin1,3174.3%9813.1%1,1173.5%
Hobart1210.4%1590.5%1970.6%
National82,5442.5%75,9472.2%84,5912.5%

Key Points

  • National residential rental vacancy rate increased marginally in December 2019 to 5% from 2.2% recorded in November. The total number of vacancies Australia-wide is now at 84,591 vacant residential properties.
  • All states recorded marginal increases in vacancy rates with Sydney’s vacancy rate recording the highest at 6% followed by Darwin at 3.5% and Brisbane at 2.9%. Hobart is the lowest of all capital cities at 0.6%
  • Over the month, Capital city asking rents increased 9% for houses and 0.7% for units for the week ending 12 January 2020 to record asking rents of $555 per week for houses and $437 per week for units.

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.

Although there was a small rise in vacancy rates across all cities in December due to seasonality, the increasing rents in most capital cities could see a move towards a landlords market in the coming months.

Asking Rents

Over the month, Capital city asking rents increased 0.9% for houses and 0.7% for units for the week ending 12 January 2020 to record asking rents of $555 per week for houses and $437 per week for units. Buy Home In Australia

In comparison over the 12 months, asking rents declined 0.7% for houses and 0.5% for units.

Sydney, Melbourne, Perth and Adelaide all recorded increases in asking rents for both houses and units over the month. Brisbane and Hobart recorded increases in house asking rents but unit asking rents decreased by 0.2% and 0.5% respectively.

It was the reverse in Canberra where the city’s house asking rents decreased by 2.4% but its unit asking rents increased by 0.5%.

Darwin’s house asking rents recorded the highest decrease of 3.0% with unit rents remaining steady.

SQM Research Weekly Rents Index
Week ending: 12 Jan 2020RentChange on
prev week
Rolling month
% change
12 month
% change
SydneyAll Houses686.61.40.3%-2.7%
All Units496.20.80.5%-2.5%
MelbourneAll Houses539.82.21.0%-0.3%
All Units413.91.10.9%1.2%
BrisbaneAll Houses473.1-0.10.9%3.4%
All Units377.80.2-0.2%0.4%
PerthAll Houses441.61.40.6%0.5%
All Units336.2-1.20.8%2.9%
AdelaideAll Houses402.7-1.70.1%1.7%
All Units314.6-1.60.2%4.1%
CanberraAll Houses633.1-1.1-2.4%-0.3%
All Units465.31.70.5%-0.7%
DarwinAll Houses468.5-5.5-3.0%-7.6%
All Units380.7-3.7-0.0%-2.8%
HobartAll Houses462.5-5.52.0%9.8%
All Units420.611.4-0.5%23.2%
NationalAll Houses451.03.00.7%0.4%
All Units364.01.00.0%-1.1%
Cap City AverageAll Houses555.01.00.9%-0.7%
All Units437.00.00.7%-0.5%

Source: www.sqmresearch.com.au

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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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