By Louis Christopher May 14, 2024

A A A

Vacancy Rates Increased to 1.1% | SQM Research

Property Market News
Vacancy Rates Increased to 1.1% | SQM Research

Key takeaways

Over the past 30 days to the 12th of May 2024, the capital city asking rents recorded a softer rise compared to recent periods with capital city and national asking rents rising by just 0.5%.

This increase represents one of the slower rises in market rents since the outbreak of the national rental crisis in 2021.National vacancy rates have slightly increased to 1.1% over the month of April 2024.

The total number of rental vacancies Australia-wide now stands at 33,177 residential properties.

National vacancy rates have slightly increased to 1.1% over the month of April 2024.

This represents a rise from March when the national rental vacancy rate was 1.0%.

The total number of rental vacancies Australia-wide now stands at 33,177 residential properties.

Sydney recorded a rental vacancy rate of 1.2% with 10,133 rental dwellings vacant, up from 1.1% recorded in the previous month. Melbourne recorded a steady rental vacancy rate of 1.1%

Canberra recorded the highest rental vacancy rate out of any State and Territory at 1.7%.

While Perth and Adelaide equally recorded the lowest vacancy rate at just 0.6%.

Darwin recorded the largest change with rental vacancies falling from 1.4% in the previous month to 1.1% recorded in April.

Vacancy rates in the Sydney CBD, Melbourne CBD, Brisbane CBD, and Adelaide CBD all recorded rises in rental vacancies, indicating an easing of sorts in the inner city, student-focused rental markets.

While Canberra CBD, Perth CBD, Darwin CBD, and Hobart CBD recorded steady to falling vacancy rates.

Vacancy Rates - April 2024

City	Apr 2023 Vacancies	Apr 2023 Vacancy Rate	Mar 2024 Vacancies	Mar 2024 Vacancy Rate	Apr 2024 Vacancies	Apr 2024 Vacancy Rate
Sydney	10,133	1.4%	8,234	1.1%	8,927	1.2%
Melbourne	6,430	1.2%	5,620	1.1%	5,977	1.1%
Brisbane	3,372	1.0%	3,363	1.0%	3,491	1.0%
Perth	1,170	0.6%	912	0.5%	1,077	0.6%
Adelaide	1,031	0.6%	888	0.5%	980	0.6%
Canberra	1,209	2.0%	980	1.6%	1,029	1.7%
Darwin	283	1.1%	357	1.4%	282	1.1%
Hobart	439	1.6%	375	1.3%	389	1.4%
National	36,785	1.2%	31,356	1.0%	33,177	1.1%

Rents

Over the past 30 days to the 12th of May 2024, the capital city asking rents recorded a softer rise compared to recent periods with capital city and national asking rents rising by just 0.5%.

This increase represents one of the slower rises in market rents since the outbreak of the national rental crisis in 2021.

Canberra and Hobart again recorded declines in rents of 0.9% respectively.

Surprisingly Darwin recorded the fastest increase of 4.8%.

The second highest increase was from Adelaide at 2.2% and next was Perth at 1.6%.

The national median weekly asking rent for a dwelling is recorded at $625 per week.

Sydney continued to record the highest weekly rent for a house at $1,059 per week.

While Hobart continued to offer the best rental affordability for units rent of all capital cities at $459 per week.

Sydney

Property Type	Rent ($)	Weekly change	Monthly change	12 Months change
All Houses	$1,059.91	-0.91	0.4%	10.1%
All Units	$711.87	-0.87	0.3%	8.0%
Combined	$853.35	-0.89	0.3%	9.1%

Source: SQM Research

Melbourne

Property Type	Rent ($)	Weekly change	Monthly change	12 Months change
All Houses	$744.64	0.36	0.6%	10.8%
All Units	$559.60	0.40	0.2%	7.7%
Combined	$635.94	0.38	0.4%	9.3%

Brisbane

Property Type	Rent ($)	Weekly change	Monthly change	12 Months change
All Houses	$716.82	-0.82	0.1%	6.1%
All Units	$580.81	3.19	0.7%	10.2%
Combined	$655.61	0.98	0.3%	7.7%

Perth

Property Type	Rent ($)	Weekly change	Monthly change	12 Months change
All Houses	$789.77	0.23	1.1%	17.1%
All Units	$609.47	5.53	2.5%	17.3%
Combined	$714.48	2.44	1.6%	17.2%

Adelaide

Property Type	Rent $)	Weekly change	Monthly change	12 Months change
All Houses	$642.13	6.87	1.9%	11.7%
All Units	$481.32	2.68	3.0%	16.3%
Combined	$586.85	5.43	2.2%	13.1%

Canberra

Property Type	Rent ($)	Weekly change	Monthly change	12 Months change
All Houses	$763.78	5.22	-1.1%	-1.1%
All Units	$566.87	-1.87	-0.7%	1.3%
Combined	$656.97	1.37	-0.9%	0.0%

Darwin

Property Type	Rent ($)	Weekly change	Monthly change	12 Months change
All Houses	$683.13	-9.13	-2.6%	-5.3%
All Units	$550.52	6.48	11.8%	9.5%
Combined	$604.19	0.16	4.8%	2.3%

Hobart

Property Type	Rent 9$)	Weekly change	Monthly change	12 Months change
All Houses	$534.55	-5.55	-0.8%	-0.1%
All Units	$459.04	1.96	-1.0%	-2.9%
Combined	$504.22	-2.53	-0.9%	-1.1%

National Rental Vacancy Rates

Property Type	Rent ($)	Weekly change	Monthly change	12 Months change
All Houses	$697.00	2.00	0.7%	10.6%
All Units	$542.00	0.00	0.2%	8.8%
Combined	$625.00	1.07	0.5%	9.9%

Average Capital City Rental Vacancy Rates

Property Type	Rent ($)	Monthly change	12 Months change
All Houses	$838	0.5%	10.4%
All Units	$631	0.5%	9.0%
Combined	$727.80	0.5%	9.8%

Final note...

As stated in our last update, we have recorded a slight easing in rental vacancy rates for April, but the rental crisis is still, far from over at this stage.

The immediate outlook is vacancy rates are set to rise somewhat into winter.

This is the normal seasonality we get at this time of year so one should be a little careful about reading into these rises.

Nevertheless, it might provide some minor relief to tenants who still have excessive difficulties in finding longer-term rental accommodation around the country.

The full-year outlook remains the same in that we expect overall tight vacancy rates to be with us for 2024, driven by a fall in dwelling completions relative to ongoing growing demand.

About Louis Christopher 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