National Vacancy Rates Remain Steady

The national residential vacancy rate has remained steady at 2.2% in February 2019, with the total number of vacancies Australia-wide now at 72,333.

Perth is the only capital city to increase its vacancy rate from 1.1% in January to 1.2%, resulting in 2,197 properties available for rent in February 2019.

Brisbane, Canberra, Darwin and Hobart experienced marginal decreases of 0.1% in vacancy rates.  Housing Market Crash

Melbourne decreased by 0.2% over the month to 1.7%.

Sydney and Adelaide’s vacancy rate have remained steady at 3.0% and 3.2% respectively.

Hobart still remains the lowest of all capital cities at 0.4% for February 2019.

Darwin ranks the highest of all capital cities at 3.7% followed by Sydney at 3.2%.

City Feb-2018 Vacancies Feb-2018 Vacancy Rate Jan-2019 Vacancies Jan-2019 Vacancy Rate Feb-2019 Vacancies Feb-2019 Vacancy Rate
Sydney 15,581 2.3% 22,426 3.2% 22,396 3.2%
Melbourne 7,889 1.4% 10,564 1.9% 9,818 1.7%
Brisbane 10,925 3.4% 8,911 2.7% 8,611 2.6%
Adelaide 8,319 4.1% 6,121 3.0% 6,170 3.0%
Perth 2,540 1.4% 2,141 1.1% 2,197 1.2%
Canberra 495 0.8% 594 0.9% 502 0.8%
Darwin 989 3.3% 1,193 3.8% 1,161 3.7%
Hobart 145 0.5% 144 0.5% 133 0.4%
National 69,727 2.2% 72,574 2.2% 72,333 2.2%

Key Points

  • Nationally, the vacancy rate has remained steady at 2% from January 2019.
  • Melbourne, Brisbane, Canberra, Darwin and Hobart experienced marginal decreases in vacancy rates.  
    property investors
  • Sydney and Adelaide have remained steady at 2% and 3.0% respectively.
  • Perth is the only capital city to increase its vacancy rate from 1.1% in January to 2% in February 2019.
  • Darwin continues to have the highest vacancy rate at 7%, followed by Sydney at 3.2%.
  • Capital city asking rents declined 2% for both houses and units over the month to 12 March 2019 to $559 per week for houses and $441 per week for units.

The steady vacancies in February is largely due to a seasonal effect as students and workers moved to new rental homes for the beginning of the year.

Going forward, our expectation is vacancy rates will rise in 2019, driven by some 200,000 dwellings expected to be completed this year which is well above our estimate of underling demand of approximately 170,000 dwellings.

Sydney, Melbourne and Canberra will likely see the bulk of the rises in rises in vacancies.

Asking Rents For Rent

Capital city asking rents declined 0.2% for both houses and units over the month to 12 March 2019 to $559 per week for houses and $441 per week for units.

Similarly, over the 12 months, asking rents for both houses and units also declined by 0.2%.

Adelaide and Hobart recorded increases in weekly rents over the month for both houses and units with Hobart houses recording the highest weekly rental increase of 4.5% for houses and 1.8% for units.

Sydney, Brisbane, Canberra and Darwin recorded marginal decreases in both house and unit asking rents over the month to 12 March 2019.

SQM Research Weekly Rents Index
Week ending: 12 Mar 2019 Rent Change on
prev week
Rolling month
% chg
12 month
% chg
Sydney All Houses 706.9 0.1 -0.5% -4.3%
All Units 507.2 -0.2 -0.7% -3.2%
Melbourne All Houses 543.6 -0.6 -0.0% 2.3%
All Units 420.1 0.9 0.7% 4.0%
Brisbane All Houses 456.8 -0.8 -0.1% 2.1%
All Units 370.9 0.1 -1.0% 1.2%
Perth All Houses 440.5 0.5 -0.1% 4.2%
All Units 333.3 1.7 1.4% 2.0%
Adelaide All Houses 394.8 1.2 0.6% 3.4%
All Units 302.4 0.6 0.9% 2.3%
Canberra All Houses 644.9 3.1 -0.0% 4.1%
All Units 455.1 -0.1 -1.2% 4.0%
Darwin All Houses 490.3 -0.3 -2.8% -9.5%
All Units 378.4 -0.4 -1.6% -8.6%
Hobart All Houses 437.7 6.3 4.5% 3.7%
All Units 364.4 -2.4 1.8% -0.2%
National All Houses 447.0 2.0 -0.2% 0.9%
All Units 360.0 0.0 -0.6% 0.8%
Cap City Average All Houses 559.0 1.0 -0.2% -0.2%
All Units 441.0 0.0 -0.2% -0.2%

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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