Data released by SQM Research has revealed the national residential vacancy rate dipped to 2.1% in August 2018, while Sydney’s vacancy rate remained at its highest level in 13 years as an oversupply of rental property emerges there, which is keeping asking rents down.
The number of vacancies Australia-wide sat at 70,447 properties.
Sydney’s vacancy rate was unchanged at 2.8% from July with 19,114 properties available for rent, and remains at the highest level since SQM started recording the data in 2005, and well up from 1.9% a year ago.
In contrast, Melbourne’s vacancy rate was much lower at 1.6% in August, though unchanged from July.
Hobart's vacancy rate dropped to 0.5% from 0.7% in July.
Canberra’s vacancy rate slipped to 0.7% in August, down from 0.8%.
- Nationally, the vacancy rate slipped to 2.1% in August from 2.2% July. • Sydney’s vacancy rate remained at a 13-year high of 2.8%.
- Hobart recorded the lowest vacancy rate of 0.5%. Page 3 of 3 • Melbourne’s vacancy rate was steady at 1.6% in August.
- Capital city asking rents for houses rose over the month to 12 September 2018 by 0.7% to $552 a week
- Capital city asking rents for units were steady over the month at $440 a week
Brisbane has seen a sustained reduction in its vacancy rate, which fell to 2.8% in August, down from 2.9% in July and 3.4% a year ago.
Perth’s vacancy rate dropped to 3.7% and is well down from 4.9% a year earlier as the oversupply of rental properties eases in that city.
Darwin’s vacancy rate bucked the trend and rose to 3.5% from 3.4% in July.
Asking rents had eased in Sydney given the greater supply of rental accommodation, which is now verging on oversupply.
The trend for the vacancy rate is definitely up and, as a result, Sydney is increasingly becoming a tenant’s market.
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Over the year to 12 September, asking rents for houses in Sydney dropped by 3.4% and we expect to see further falls.
In contrast, the tight rental markets in Hobart and Canberra are continuing to push asking rents higher.
Capital city asking rents for houses rose over the month to 12 September 2018 by 0.7% to $552 a week.
Unit asking rents were steady at $440 a week.
Over the year, asking rents for houses and units rose just 0.5%.
The asking rent for a three-bedroom house in Sydney remains the highest nationwide at $708 a week and units $515 a week.
Canberra asking house rents follow at $636 a week for houses and $439 for units.
Like Sydney, asking rents have fallen for units in Melbourne, being down 0.5% over the month to 12 September to $409 a week.
Asking rents for houses were up 0.8% to $527.