Data released by SQM Research today has revealed the national residential rental vacancy rate increased in June 2019 to 2.3%, an increase from 2.2% in May. The total number of vacancies Australia-wide is now at 78,690 vacant residential properties, an increase of 3,597 over the month and up 2,933 dwellings over the past 12 months.
Nearly all capital cities recorded minor increases ranging from 0.1% to 0.2% over the month, Darwin was the only capital city to record a decrease of 0.2% to 3.1% in vacancy rates.
Sydney continues to have the highest vacancy rates in the country at 3.5%, an increase of 0.2%. This is the highest for Sydney since 2005. Perth’s vacancy rate is not far behind at 3.2%, having increased 0.1%.
Melbourne’s vacancy rate increased to 2.0%. Hobart’s vacancy rate remains steady at 0.5% and continues to record the lowest vacancy rate in the country.
The increase in rental vacancies in June tends to be a seasonal rise for the start of winter however Sydney’s increases goes beyond seasonal factors and so our expectation remains that Sydney will reach a 4% vacancy rate before 2019 is completed.
Melbourne is also likely to record more rises in rental vacancies as newly completed dwellings purchased as ‘off-the-plan’ in the last boom, enter the rental market now.
In spite of the rise in vacancies this month, Brisbane, Adelaide and Hobart’s rental market is in favour for landlords as in these cities have also recorded moderate increases in asking rents for the month and continue to record muted dwelling completions.
Capital city asking rents declined 0.4% for houses but remained steady for units for the week ending 12 July 2019 to record asking rents of $551 per week for houses and $441 per week for units.
In comparison, over the 12 months, asking rents for houses increased 0.4% but declined 0.7% for units.
Sydney and Melbourne’s asking rents for houses and units both declined in July. Sydney rents dropped 0.5% for houses and 0.2% for units to 12 July and Melbourne’s drop was 0.9% for houses and 0.2% for units.
Brisbane, Adelaide and Hobart were the only states to experience increases in weekly rents for both houses and units. Adelaide’s house rents increased 1.1% and units by 0.4%, Brisbane’s house rents increased by 1.0% units increased by 0.7%. Hobart’s house rents increased 3.6% and units increased by 4.9% (the highest among all states).