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Vacancy Rates Sharply Decrease Over January | SQM Research - featured image
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Vacancy Rates Sharply Decrease Over January | SQM Research

The national vacancy rate decreased to 1.1% in January from 1.3% recorded in December.

The total number of rental vacancies Australia-wide now stands at 32,108 residential properties, which is a decrease from 39,797 in December.

Sydney, Melbourne, Brisbane, Canberra, Darwin and Hobart vacancy rates fell from 1.7%, 1.5%, 1.2%, 2.1%, 1.9% and 1.1% to 1.3%, 1.1%, 1%, 1.7% 1.7% and 1%.

In the smaller capital cities, Perth and Adelaide, vacancy rates sat below 1.0% over January.

Rental Property

Vacancy rates in the Sydney CBD, Melbourne CBD and Brisbane CBD decreased to 4.5%, 3.8% and 2.5% over January.

Vacancy Rates - January 2024

City Jan 2023 Vacancies Jan 2023 Vacancy Rate Dec 2023 Vacancies Dec 2023 Vacancy Rate Jan 2024 Vacancies Jan 2024 Vacancy Rate
Sydney 9,386 1.3% 12,097 1.7% 9,114 1.3%
Melbourne 6,447 1.2% 7,824 1.5% 5,859 1.1%
Brisbane 2,845 0.8% 4,117 1.2% 3,327 1.0%
Perth 753 0.4% 969 0.5% 775 0.4%
Adelaide 773 0.5% 950 0.6% 783 0.5%
Canberra 978 1.6% 1,293 2.1% 1,061 1.7%
Darwin 353 1.3% 491 1.9% 445 1.7%
Hobart 195 0.7% 314 1.1% 278 1.0%
National 31,592 1.0% 39,797 1.3% 32,108 1.1%

Rents

Over the past 30 days to 14 February 2024, capital city asking rents rose by another 1.4% with the 12-month rise standing at 13.1%.

National rents across nearly all regions for the reporting period, indicating no end in sight to the rental crisis as at the start of 2024.

The national median weekly asking rent for a dwelling is recorded at $ 614.54 per week.

Sydney recorded the highest weekly rent for a house at $1,037.08 per week.

While Adelaide units offer the best rental affordability of all capital cities at $451.20 per week.

Sydney

Property Type Rent Δ Week Δ Month Δ 12 Months
All Houses $1,037.08 -7.08 1.3% 13.4%
All Units $694.61 1.39 0.7% 13.3%
Combined $833.72 -2.05 1.0% 13.4%

Source: SQM Research

Melbourne

Property Type Rent Δ Week Δ Month Δ 12 Months
All Houses $736.04 0.96 1.2% 17.0%
All Units $540.89 4.11 3.6% 12.6%
Combined $621.27 2.81 2.4% 14.8%

Brisbane

Property Type Rent Δ Week Δ Month Δ 12 Months
All Houses $718.24 4.76 1.9% 9.0%
All Units $568.10 0.90 0.6% 13.8%
Combined $650.68 3.03 1.4% 10.9%

Perth

Property Type Rent Δ Week Δ Month Δ 12 Months
All Houses $776.69 -4.69 1.9% 18.8%
All Units $576.80 7.20 1.6% 18.2%
Combined $693.12 0.28 1.8% 18.6%

Adelaide

Property Type Rent Δ Week Δ Month Δ 12 Months
All Houses $637.61 -2.61 0.9% 14.7%
All Units $451.20 -3.20 0.0% 12.3%
Combined $573.39 -2.82 0.7% 14.2%

Canberra

Property Type Rent Δ Week Δ Month Δ 12 Months
All Houses $751.45 1.55 1.4% -2.4%
All Units $570.21 1.79 2.0% 1.1%
Combined $653.19 1.68 1.7% -0.8%

Darwin

Property Type Rent Δ Week Δ Month Δ 12 Months
All Houses $737.75 4.25 2.8% 3.2%
All Units $505.25 -5.25 2.3% 8.0%
Combined $599.26 -1.41 2.5% 5.6%

Hobart

Property Type Rent Δ Week Δ Month Δ 12 Months
All Houses $550.05 -5.05 0.0% 0.2%
All Units $468.30 -2.30 0.3% -1.6%
Combined $517.19 -3.94 0.1% -0.4%

 

National Rental Vacancy Rates

Property Type Rent Δ Week Δ Month Δ 12 Months
All Houses $688.00 2.00 0.7% 9.0%
All Units $530 0.00 0.2% 10.4%
Combined $614.54 1.07 0.5% 9.6%

 

Average Capital City Rental Vacancy Rates

Property Type Rent Δ Week Δ Month Δ 12 Months
All Houses $824 -4.00 1.1% 13.3%
All Units $614 3.00 1.8% 12.7%
Combined $712.14 -0.27 1.4% 13.1%

Louis Christopher, Managing Director at SQM Research said:

“Our rental market update today reveals a sharp decline in rental vacancy rates cross the nation.

Most likely the fall in rental vacancies was driven by increased demand from tertiary students following the start of campus semesters for 2024.

As well as graduates entering the workforce for the first time.

It is a seasonal demand increase we see at the start of each and every year but is most certainly problematic due to the fact the current rental market remains in crisis.

Going forward, our best-case scenario for renters is that the population growth rate slows considerably this year to an increase of about 360,000 people which would likely mean a stabilisation in rents starting from the June quarter.

The worse case is population continues to boom at current rates.”

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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