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Rental Vacancies Plunge Over February – Rents Higher Again

Rental vacancies have plunged over February with border re-openings and the easing of covid restrictions reactivating demand in markets already short of rental stock.

The national weekly median asking house rent has increased by 8.9% over the past year to $497, with the February house vacancy rate lower again - falling to 1.3%.

Asking RentsAsking Rents2

All capitals have recorded significant increases in asking house rents over the year ending February 2022, with most remarkably recording double-figure growth.

Canberra has reported the highest annual growth, rising by 15.7% followed by Hobart up 12.1% and Perth higher by 11.6%.

Vacancy rates for houses continue to fall to record lows with Melbourne still the highest and falling to 2.0% over February. Oher capitals with the exception of Perth now have vacancy rates below 1.0%.

Canberra continues to record the highest capital city weekly house rents rising to $700 over the month followed by Darwin at $600 and Sydney at $580.

Brisbane and Melbourne have the most affordable weekly house rents at $440.

Although unit rentals haven’t recorded the sharp increases reported by houses over the past year, annual rents have nonetheless risen solidly.

The national January median weekly asking rent for units at $432 is an increase of 4.1% over the year, with the national vacancy rate for units falling sharply to 2.3% over February. Property Market

All capitals have reported increases in unit rents over the year to February with the exception of Melbourne down 3,2%. Darwin reported the sharpest increase - up by 15.7% followed by Canberra up 10.0%.

Vacancy rates for units have generally fallen over February, with Melbourne and Sydney down sharply and now under 3.0%.

Canberra reported the highest weekly asking rents for units over February, rising to $550, with Melbourne the most affordable at $360.

Demand for rental homes will continue to increase over 2022 driven by strengthening economies, the easing of covid restrictions and concerns, and the return of high levels of migration – all set to exacerbate a chronic undersupply of rental accommodation.

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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