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Residential rental property availability up

Residential rental vacancies

The vacancy rates for residential rental properties increased slightly over March, with regional areas experiencing the largest shifts.

The availability of residential rental properties improved slightly during March, with an increase in the national vacancy rate to 1.1 per cent from 1 per cent in February.

The latest SQM Research data showed the slight lift in the overall vacancy rate was mainly driven by the Brisbane, Perth and Hobart markets. To this end, Perth recorded an increase to 0.5 per cent from 0.4 per cent the previous month, Hobart a rose to 1.1 per cent from 0.9 per cent and Brisbane moved from 0.8 per cent to 0.9 per cent.

In contrast, Sydney and Melbourne’s rates remained static at 1.3 per cent and 1.1 per cent respectively.

An analysis of the central business districts of Australia’s largest capital cities showed all of them experienced slight increases in the vacancy rates of residential rental real estate over March, with Sydney rising to 3.1 per cent, Melbourne increasing to 2.3 per cent and Brisbane lifting to 1.3 per cent.

Distinct to the experience of the city centres, regional rental vacancy rates rose “sharply”, led by areas of New South Wales and the Gold Coast, according to SQM Research.

To this end, February saw NSW north coast rental vacancy rates jump from 1.4 per cent to 1.6 per cent, while the Blue Mountains recorded its highest rental vacancy rate since April 2020 of 2 per cent.

Similarly, the Gold Coast witnessed its peak rental vacancy rate since October 2021 of 1.1 per cent.

“The rental crisis in Australia’s regions has peaked with an easing in rental vacancy rates and rents across many smaller townships and coastal locations. This peak also extends to some of our smaller capital cities such as Hobart, where rental vacancy rates rose back over 1 per cent and rents are now down by 1.8 per cent for the past 30 days,” SQM Research managing director Louis Christopher noted.

“However, the same cannot be said for our two largest capital cities where the rental crisis rolls on, driven by rampant population growth, a slowdown in the respective construction pipeline and a return to the city office move from the regions.”

At the same time, the asking rents for capital cities appreciated by 2.1 per cent for the month. Currently the median rent for a capital city house is $758 a week, while the rent for a capital city unit is $576 a week.

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