SQM Research recorded that the national residential property rental vacancy rate has continued to fall, reaching 1.0% in October.
The nationwide rental crisis is deepening, with a notable reduction of 2,353 dwellings in available rentals, bringing the total vacancies to 30,307.
This underscores the growing crisis in the housing rental market.
Most of the capital cities recorded a decrease in vacancies, with Sydney, Brisbane and Hobart reporting decreases in rental vacancy rates during the month, standing at 1.2%, 0.9% and 1.3% respectively.
Following the decline observed last month, the rental vacancy rate in Sydney CBD decreased to 3.8% in October.
Similarly, Melbourne CBD and Perth CBD witnessed reductions in their rental vacancy rates, now standing at 4.8% and 0.9%, respectively
Most regional areas experienced decreases in rental vacancy rates.
The North Coast NSW dropped to 1.2%, while the Sunshine Coast also recorded a decline to 0.9%.
In contrast, Northern SA recorded an increase of 0.6%.
Vacancy Rates - October 2023
| City | Oct 2022 Vacancies | Oct 2022 Vacancy Rate | Sep 2023 Vacancies | Sep 2023 Vacancy Rate | Oct 2023 Vacancies | Oct 2023 Vacancy Rate |
|---|---|---|---|---|---|---|
| Sydney | 9,449 | 1.3% | 9,084 | 1.3% | 8,368 | 1.2% |
| Melbourne | 8,058 | 1.5% | 6,449 | 1.2% | 6,092 | 1.2% |
| Brisbane | 2,568 | 0.8% | 3,288 | 1.0% | 3,132 | 0.9% |
| Perth | 732 | 0.4% | 783 | 0.4% | 683 | 0.4% |
| Adelaide | 683 | 0.4% | 819 | 0.5% | 722 | 0.4% |
| Canberra | 684 | 1.1% | 1,087 | 1.8% | 1,027 | 1.7% |
| Darwin | 270 | 1.0% | 307 | 1.2% | 368 | 1.4% |
| Hobart | 127 | 0.5% | 455 | 1.6% | 373 | 1.3% |
| National | 30,929 | 1.0% | 32,659 | 1.1% | 30,307 | 1.0% |
Asking Rents
In the 30 days leading up to November 12, 2023, asking rents in the capital city increased by 0.7%, contributing to a notable 15.5% rise over the past year.
Specifically, house rents in the capital cities rose by 0.5%, with a 12-month increase of 15.0%, while unit rents showed a more rapid 1.0% increase over the last 30 days and a 15.9% rise over the past 12 months.
The national median weekly asking rent for combined dwelling is $598.22 a week.
The capital city asking rent for combined dwelling is $690.47 a week.
The median rent for a capital city house is $797 a week while the rent for a capital city unit is $597 a week.
The most expensive rent is Sydney houses at $1,012.57 a week.
At the same time, the most affordable rent is Adelaide units at $437.90 a week.
In the present month, Melbourne has seen a slight dip in rents, with a decrease of 0.2% for combined dwellings.
Moreover, the asking rent for combined dwellings in Darwin has dropped by 3.6%, mainly influenced by a notable decline of 6.0% in the rent for all units.
Sydney
| Property type | Weekly rent | Chg on prev wk ($) | Δ Monthly | Δ Annual |
|---|---|---|---|---|
| All Houses | $1,012.57 | 3.43 | 1.5% | 16.3% |
| All Units | $679.27 | 4.73 | 1.0% | 17.3% |
| Combined | $814.71 | 4.20 | 1.3% | 16.8% |
Melbourne
| Property type | Weekly rent | Chg on prev wk ($) | Δ Monthly | Δ Annual |
|---|---|---|---|---|
| All Houses | $702.61 | -1.61 | 0.0% | 19.0% |
| All Units | $520.44 | -1.44 | -0.3% | 14.4% |
| Combined | $595.41 | -1.51 | -0.2% | 16.7% |
Brisbane
| Property type | Weekly rent | Chg on prev wk ($) | Δ Monthly | Δ Annual |
|---|---|---|---|---|
| All Houses | $706.01 | -6.01 | 1.9% | 10.4% |
| All Units | $547.98 | 2.02 | 0.0% | 14.8% |
| Combined | $634.87 | -2.40 | 1.1% | 12.2% |
Perth
| Property type | Weekly rent | Chg on prev wk ($) | Δ Monthly | Δ Annual |
|---|---|---|---|---|
| All Houses | $731.06 | -0.06 | 1.4% | 19.0% |
| All Units | $553.60 | 8.40 | 1.6% | 18.3% |
| Combined | $656.80 | 3.48 | 1.5% | 18.7% |
Adelaide
| Property type | Weekly rent | Chg on prev wk ($) | Δ Monthly | Δ Annual |
|---|---|---|---|---|
| All Houses | $602.65 | 1.35 | 1.9% | 12.2% |
| All Units | $437.90 | 2.10 | -0.6% | 12.0% |
| Combined | $545.77 | 1.61 | 1.2% | 12.3% |
Canberra
| Property type | Weekly rent | Chg on prev wk ($) | Δ Monthly | Δ Annual |
|---|---|---|---|---|
| All Houses | $722.04 | -1.04 | -2.0% | -3.7% |
| All Units | $568.41 | 4.59 | 1.8% | 1.8% |
| Combined | $638.86 | 2.01 | -0.2% | -1.1% |
Darwin
| Property type | Weekly rent | Chg on prev wk ($) | Δ Monthly | Δ Annual |
|---|---|---|---|---|
| All Houses | $740.27 | 1.73 | -1.3% | 12.6% |
| All Units | $458.76 | -1.76 | -6.0% | -4.2% |
| Combined | $572.64 | -0.35 | -3.6% | 3.9% |
Hobart
| Property type | Weekly rent | Chg on prev wk ($) | Δ Monthly | Δ Annual |
|---|---|---|---|---|
| All Houses | $525.92 | 2.08 | 3.2% | -1.8% |
| All Units | $455.18 | 0.82 | 1.6% | -3.1% |
| Combined | $497.47 | 1.57 | 2.6 | -2.3% |
National Rental Vacancy Rates
| Property type | Weekly rent | Chg on prev wk ($) | Δ Monthly | Δ Annual |
|---|---|---|---|---|
| All Houses | $668 | 3.00 | 1.2% | 9.0% |
| All Units | $518 | 8.00 | 0.0% | 9.5% |
| Combined | $598.22 | 5.33 | 0.7% | 9.2% |
Average Capital City Rental Vacancy Rates
| Property type | Weekly rent | Chg on prev wk ($) | Δ Monthly | Δ Annual |
|---|---|---|---|---|
| All Houses | $797 | -1.00 | 0.5% | 15.0% |
| All Units | $597 | 6.00 | 1.0% | 15.9% |
| Combined | $690.47 | 2.73 | 0.7% | 15.5% |
Next Update: 21 November 2023
- Also read:Heat comes out of the housing market as values across Melbourne dip and Sydney slows | Corelogic Home Value Index
- Also read:Home Price Growth Still Strong Over November | Latest Housing Market Stats
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- Also read:This week’s Australian Property Market Update – Latest Data, State by State November 28th, 2023
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After a minor reprieve earlier this year, we are back to the record low in rental vacancies of 1.0%.
Vacancies have been tightening again across the nation.
They are tightening in our regions as well as our cities.
In such an environment, the prospect of an easing in rents over the next six months is very unlikely to occur.
And most likely, market rental increases will continue to rise between 10 to 15%.
Such rises will continue to work against the RBA’s objective of bringing back inflation to 2% to 3%.
Given that 2024 is very likely to see a fall in dwelling completion to about 153,000 dwellings, the only real prospect of having some relief in the rental market next year is a cap on migration rates.
I have no doubt the runaway population growth Australia has had since the start of 202,2 is directly contributing to our rental crisis and towards other price rises in the greater economy.
