National Vacancy Rates Increase

Data released by SQM Research has revealed the national residential rental vacancy rate increased marginally in November 2019 to 2.2% from 2.1% recorded in October.

The total number of vacancies Australia-wide is now at 75,947 vacant residential properties.  House Model Toy Miniature On Grass Blurred Background. Real Estate, Rent, Sale Or Buying Property Concept

November 2018’s vacancy rate was 2.3%.

All states recorded an increase in vacancy rates with Darwin and Hobart’s vacancy rate remaining steady at 3.1% and 0.5% respectively.

Sydney continues to record the highest vacancy rate at 3.4%. Since November 2018, Sydney’s vacancy rate has been over 3.0%.

Melbourne, Brisbane and Adelaide recorded minor increases in vacancy rates over the month of 0.2%. Perth and Canberra increased by 0.1%.

City Nov-2018 Vacancies Nov- 2018
Vacancy Rate
Oct-2019 Vacancies Oct-2019
Vacancy Rate
Nov-2019 Vacancies Nov-2019
Vacancy Rate
Sydney 22,215 3.2% 22,387 3.1% 24,258 3.4%
Melbourne 10,808 1.9% 11,882 2.0% 12,963 2.2%
Brisbane 9,783 3.0% 7,950 2.3% 8,629 2.5%
Perth 6,971 3.4% 4,970 2.4% 5,200 2.5%
Adelaide 2,318 1.2% 1,548 0.8% 1,896 1.0%
Canberra 568 0.9% 647 1.0% 756 1.1%
Darwin 1,235 4.0% 968 3.1% 981 3.1%
Hobart 107 0.4% 151 0.5% 159 0.5%
National 74,576 2.3% 69,951 2.1% 75,947 2.2%

Key Points

  • The national residential rental vacancy rate increased marginally in November 2019 at 2% from October. The total number of vacancies Australia-wide is now at 75,947 vacant residential properties.
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  • Melbourne, Brisbane, Adelaide and Canberra recorded minor increases in vacancy rates over the month of 2%.
  • Darwin and Hobart’s vacancy rate remaining steady at 1% and 0.5% respectively.
  • Sydney continues to record the highest vacancy rate at 4%.
  • Over the month, Capital city asking rents increased 2% for houses but declined 0.2% for units for the week ending 12 December 2019.
  • Melbourne, Brisbane, Perth, Adelaide and Hobart all recorded increases in asking rents for both houses and units over the month.
  • Hobart recorded the highest increases in asking rents of 0% for houses.
  • Darwin recorded the highest decrease for house rents of 90% but increased it unit rents by 1.0%.

The rise in vacancy rates across most cities is expected in November as the year winds up and demand for rental accommodation drops.

Sydney’s oversupply of rental accommodation continues, with the vacancy rate up from 3.2% a year ago.

The city is still a renter’s market as is Darwin.

Our expectation is rental vacancy rates will rise again in December due to a seasonal decline in rental demand, predominantly driven by students returning back home.

Asking Rents

Over the month, Capital city asking rents increased 0.2% for houses but declined 0.2% for units for the week ending 12 December 2019 to record asking rents of $550 per week for houses and $434 per week for units.  For Rent

In comparison, over the 12 months, asking rents declined 0.9% for houses and 0.5% for units.

Melbourne, Brisbane, Perth, Adelaide and Hobart all recorded increases in asking rents for both houses and units over the month.

Hobart recorded the highest increases in asking rents of 4.0% for houses.

Darwin recorded the highest decrease for house rents of 3.90% but increased its unit rents by 1.0%.

Sydney managed to increase asking rents for houses by 0.3% but recorded rent falls of 0.7% for units.

Canberra also increased house asking rents by 0.9% but decreased by 1.8% in units.

SQM Research Weekly Rents Index
Week ending: 12 Dec 2019 Rent Change on
prev week
Rolling month
% change
12 month
% change
Sydney All Houses 684.2 -3.2 0.3% -3.4%
All Units 494.0 -1.0 -0.7% -2.5%
Melbourne All Houses 534.5 -1.5 0.9% 0.0%
All Units 410.1 0.9 0.4% 0.9%
Brisbane All Houses 468.8 2.2 1.2% 3.0%
All Units 378.5 0.5 0.6% 1.0%
Perth All Houses 439.2 -1.2 0.1% 1.0%
All Units 333.7 -0.7 0.0% 3.4%
Adelaide All Houses 402.2 1.8 1.1% 2.7%
All Units 313.9 -0.9 0.6% 4.4%
Canberra All Houses 648.4 1.6 0.9% 3.7%
All Units 462.8 -2.8 -1.8% 0.4%
Darwin All Houses 483.0 -3.0 -3.9% -4.2%
All Units 380.8 2.2 1.0% -2.1%
Hobart All Houses 453.4 0.6 4.0% 6.4%
All Units 422.8 -10.8 0.8% 20.6%
National All Houses 448.0 -1.0 0.2% 1.1%
All Units 364.0 -2.0 -1.1% -0.5%
Cap City Average All Houses 550.0 -3.0 0.2% -0.9%
All Units 434.0 0.0 -0.2% -0.5%

Source: www.sqmresearch.com.au

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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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