Residential property vacancy rates fell in October, with Australia’s largest two capital cities recording the most significant decreases, the latest data from SQM Research has indicated.
More specifically, the study showed the vacancy rates for Sydney dropped from 1.5 per cent to 1.3 per cent from September to November and declined in Melbourne from 1.8 per cent to 1.5 per cent over the same period.
The analysis revealed there are now 30,929 rental vacancies across the domestic residential property market compared to a total of 33,813 recorded last month. On a more granular level, Sydney had 9449 vacancies in October compared to 10,322 in September and Melbourne 8058 vacancies in October versus 9387 in the previous month.
The research also indicated the drop in the number of rental vacancies has coincided with an increase in rental prices for both houses and apartments, with the average capital city asking rents experiencing a 2 per cent rise in the 30 days to 16 November.
The national median weekly asking rent for a dwelling now sits at $596.74 a week, with Sydney recording the highest weekly rent for a house at $871.37.
“The national rental market is still very much in favour of landlords, particularly for our capital cities where there is no evidence yet of any easing. However, there is some good news for tenants in a number of townships and regions outside the capital cities, whereby SQM Research is now recording a consistent rise in rental vacancy rates, albeit from a very low base,” SQM Research managing director Louis Christopher noted.
“This easing might be attributed to a population flow back into the cities, whereby an increasing number of white-collar workers are being asked to come back into the office. However, if we are correct in this assessment, this means the capital city rental market will continue to be under great strain for tenants over the foreseeable future and may not ease until late 2023 at the earliest.
“And as we can see through the asking rent increases over the past 30 days, the capital city rental crisis remains with us to this day.”
''