National vacancy rates on the increase

Vacancies rose in Sydney to 13,215 in June, up from 11,153 in May, giving a vacancy rate of 2.1 per cent. This compares to 1.8 per cent the previous month. In Melbourne, the vacancy rate rose to 1.7 per cent, easing off a seven-year low level of 1.5 per cent, helping to alleviate the shortage of rental properties in the city.

The vacancy rate edged higher to 0.7 per cent in Hobart, up from 0.6 per cent. In Canberra, the vacancy rate rose to 1.2 per cent, up from 1.0 per cent in May.
Elsewhere, the vacancy rose in Perth to 5.0 per cent from 4.8 per cent and in Adelaide to 1.9 per cent from 1.8 per cent.

Managing director of SQM Research Louis Christopher said the vacancy numbers would give some relief to home seekers, though rental markets remain tight in several cities.

“This year has been marked by some big falls in vacancy rates in the big cities, but in June we saw more rental stock listed, which should give some relief to renters,” he said.

“In Sydney, where there was a big jump in June vacancies, there has been some downward pressure on asking rents for houses and units, and also in Canberra, where vacancy rates eased.”

Asking rents

Asking rents for houses moderated slightly in Sydney to 2.6 per cent, and rents were down by 1.2 per cent over the month to 12 July.

The asking rent for a three-bedroom house in Sydney is now $725, while for units it stands at $522. Asking rents for units were down 0.2 per cent over the month to 12 July, but were up 3.3 per cent over the year.

Asking rents for houses in Melbourne rose 5.9 per cent annually and rose 0.2 per cent over the month to 12 July. Unit asking rents rose 1 per cent over the month to 12 July and 5.8 per cent over the year.

The asking rent for a three-bedroom house in Melbourne now sits at $511, and for units, it sits at $401.

In Perth and Darwin, asking rents are still falling due to the mining downturn.