National Vacancy Rates Increased

The national residential rental vacancy rate increased in June 2019 to 2.3%, an increase from 2.2% in May. 

The total number of vacancies Australia-wide is now at 78,690 vacant residential properties, an increase of 3,597 over the month and up 2,933 dwellings over the past 12 months. Buy Home In Australia

Nearly all capital cities recorded minor increases ranging from 0.1% to 0.2% over the month, Darwin was the only capital city to record a decrease of 0.2% to 3.1% in vacancy rates.

Sydney continues to have the highest vacancy rates in the country at 3.5%, an increase of 0.2%.

This is the highest for Sydney since 2005.

Perth’s vacancy rate is not far behind at 3.2%, having increased 0.1%.

Melbourne’s vacancy rate increased to 2.0%.

Hobart’s vacancy rate remains steady at 0.5% and continues to record the lowest vacancy rate in the country.

CityJune 2018 VacanciesJune 2018 Vacancy RateMay 2019 VacanciesMay 2019 Vacancy RateJune 2019 VacanciesJune 2019 Vacancy Rate
Sydney19,5722.8%23,7963.3%24,931 3.5%
Melbourne9,0351.6%10,3491.8%11,720 2.0%
Brisbane9,8863.0%8,1332.4%8,526 2.5%
Perth8,4264.1%6,4573.1%6,732 3.2%
Adelaide2,7261.5%2,1261.1%2,310 1.2%
Canberra5650.9%7851.2%847 1.3%
Darwin1,0623.5%1,0383.3%965 3.1%
Hobart2210.7%1430.5%161 0.5%
National75,757 2.3%75,093 2.2%78,690 2.3%

Key Points

  • National residential vacancy rates increased in June 2019 to 3%, an increase from 2.2% in May
  • Sydney has recorded the highest of all capital cities at 5% vacancy rate, and a decrease in weekly rents of 0.5% for houses and 0.2% for units.
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  • Hobart’s vacancy rate remains steady at 5% and continues to record the lowest vacancy rate in the country.
  • Capital city asking rents declined 4% for houses but remained steady for units for the week ending 12 July 2019 to record asking rents of $551 per week for houses and $441 per week for units.

The increase in rental vacancies in June tends to be a seasonal rise for the start of winter however Sydney’s increases goes beyond seasonal factors and so our expectation remains that Sydney will reach a 4% vacancy rate before 2019 is completed.

Melbourne is also likely to record more rises in rental vacancies as newly completed dwellings purchased as ‘off-the-plan’ in the last boom, enter the rental market now.

In spite of the rise in vacancies this month, Brisbane, Adelaide and Hobart’s rental market is in favour for landlords as in these cities have also recorded moderate increases in asking rents for the month and continue to record muted dwelling completions.

Asking Rents

Capital city asking rents declined 0.4% for houses but remained steady for units for the week ending 12 July 2019 to record asking rents of $551 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. For Rent

Sydney and Melbourne’s asking rents for houses and units both declined in July. Sydney rents dropped 0.5% for houses and 0.2% for units to 12 July and Melbourne’s drop was 0.9% for houses and 0.2% for units.

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

Adelaide’s house rents increased 1.1% and units by 0.4%, Brisbane’s house rents increased by 1.0% units increased by 0.7%.

Hobart’s house rents increased 3.6% and units increased by 4.9% (the highest among all states).

SQM Research Weekly Rents Index
Week ending:  12 July 2019RentChange on
prev week
Rolling month
% change
12 month
% change
SydneyAll Houses685.92.1-0.5%-3.3%
All Units501.7-0.7-0.2%-3.8%
MelbourneAll Houses534.9-0.9-0.9%2.4%
All Units423.20.8-0.2%2.8%
BrisbaneAll Houses464.51.51.0%2.8%
All Units374.60.40.7%1.1%
PerthAll Houses435.7-3.7-2.9%2.6%
All Units339.31.70.9%4.1%
AdelaideAll Houses399.90.11.1%4.4%
All Units309.70.30.4%3.4%
CanberraAll Houses624.0-2.00.9%-1.1%
All Units461.50.5-0.2%5.0%
DarwinAll Houses527.8-0.83.0%-2.4%
All Units369.31.7-0.4%-8.8%
HobartAll Houses450.69.43.6%13.0%
All Units407.84.24.9%17.4%
NationalAll Houses442.01.00.2%2.3%
All Units368.02.0-0.5%3.7%
Cap City AverageAll Houses551.02.0-0.4%0.4%
All Units441.0 0.00.0%-0.7%


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