Rental values
For the week ending 28 March 2020, the average weekly rent across Australia increased by 0.2% to $450 for houses and by 0.8% to $372 for units. Meanwhile, the average weekly rent across capital cities decreased by 1.6% to $557 for houses and by 0.7% to $438 for units.
Compared to the year prior, national weekly rents have increased by 1.6% for houses and by 1.4% for units. Meanwhile, capital city weekly rents have decreased by 0.2% for houses and by 0.9% for units.
Most capital cities across Australia recorded decreases in weekly rents for both houses and units in March. In contrast, Perth, Adelaide and Canberra recorded increases in weekly rents across the board.
Hobart still shows the strongest growth year on year with a 4.8% increase in weekly rents for houses and 12% increase in weekly rents for units. Further price breakdowns can be found here.
Vacancy rates
There are now 68,079 properties sitting vacant Australia-wide, bringing the national vacancy rate to 2% in February. This is 0.1% lower than the vacancy rate recorded for the month prior and 0.2% lower than the vacancy rate recorded for February 2019.
Across capital cities, almost all capital cities recorded a decrease in vacancy rates, with the exception of Adelaide where vacancy rates held steady at 1% from January to February, and Hobart where vacancy rates increased from 0.6% to 0.9% month on month.
Sydney surpassed Darwin and recorded the highest vacancy rate nationwide at 2.9%. In contrast, Hobart continues to maintain the lowest vacancy rate nationwide at 0.9%. This is followed by Adelaide and Canberra at 1%.
National Rental Vacancy Rates Decline in February
17 March 2020
New data released by SQM Research today has revealed the national residential rental vacancy
rate declined in February 2020 to 2.0% from 2.1% recorded in January, with the total number of
vacancies Australia-wide now at 68,079 vacant residential properties.
Most states recorded minor declines in vacancy rates with the exception of Hobart which
recorded a 0.3% increase. Adelaide remained stable at 1.0% vacancy rate.
Sydney has surpassed Darwin recording the highest vacancy rate in the country at 2.9%, having
dropped 0.3% basis points. Darwin sits at 2.7% with a 0.5% drop on last month. Canberra’s
vacancy rate has declined to 1.0% and Melbourne is now 1.9%.
The year on year comparison revealed a similar decline when the national rental vacancy rate in
February 2019 was 2.2% compared to 2.0% recorded for February 2020. Only Melbourne,
Canberra and Hobart recorded higher vacancy rates compared to this time last year.
City
Feb-19
Vacancies
Feb-19
Vacancy Rate
Jan-20
Vacancies
Jan-20
Vacancy Rate
Feb-20
Vacancies
Feb-20
Vacancy Rate
Sydney 22,396 3.2% 22,707 3.1% 20,815 2.9%
Melbourne 9,818 1.7% 12,229 2.1% 11,085 1.9%
Brisbane 8,611 2.6% 8,334 2.4% 7,530 2.2%
Perth 6,170 3.0% 4,337 2.1% 4,323 2.0%
Adelaide 2,197 1.2% 1,929 1.0% 1,953 1.0%
Canberra 502 0.8% 947 1.4% 651 1.0%
Darwin 1,161 3.7% 1,028 3.2% 879 2.7%
Hobart 133 0.4% 182 0.6% 267 0.9%
National 72,317 2.2% 72,422 2.1% 68,079 2.0%
SQM’s calculations of vacancies are based on online rental listings that have been advertised for three weeks or more compared to
the total number of established rental properties. SQM considers this to be a superior methodology compared to using a potentially
incomplete sample of agency surveys or merely relying on raw online listings advertised. Please go to our Methodology page for
more information on how SQM’s vacancies are compiled.
Managing Director of SQM Research, Louis Christopher said, "February marks the start to the
new year in the property industry and gives us a clearer picture of the rental market. The
decline in vacancy rates is a reflection of a seasonal increase in rental demand plus
ongoing decline in dwelling completions and the ongoing increase in population. We are
likely to record further declines in rental vacancy rates as 2020 progresses unless the
country enters into a prolonged economic depression.”
Asking Rents
Over the month, Capital City asking rents decreased 1.2% for houses and 0.2% for units for the
week ending 12 March 2020 to record asking rents of $562 per week for houses and $441 per
week for units. In comparison over the 12 months, asking rents increased 0.4% for houses
and remained steady for units.
Sydney, Melbourne, Adelaide and Canberra all recorded decreases in asking rents for both
houses and units over the month. Perth was the only city to record rent increases for both
houses and units, 0.1% for houses and 2.5% for units.
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Over the month, Darwin and Hobart managed small increases for house rents of 1.2% and
0.5% respectively but unit rents has fallen by 2.4% for Darwin and 1.4% for Hobart.
Brisbane recorded decreases in house asking rents of 0.4% but unit asking rents remained
stable.
SQM Research Weekly Rents Index
Week ending: 12 March 2020 Rent Change on
previous week
Rolling month
% change
12 month
% change
Sydney All Houses 702.0 -1.0 -0.8% -0.7%
All Units 500.4 -0.4 -0.3% -1.3%
Melbourne All Houses 550.8 -2.8 -0.5% 1.1%
All Units 422.6 -0.6 -0.2% 0.6%
Brisbane All Houses 469.4 -1.4 -0.4% 2.7%
All Units 378.7 0.3 0.0% 2.1%
Perth All Houses 447.8 0.2 0.1% 1.7%
All Units 344.6 3.4 2.5% 3.4%
Adelaide All Houses 406.9 1.1 -0.1% 3.1%
All Units 308.7 1.3 -0.4% 2.1%
Canberra All Houses 629.5 -1.5 -0.8% -2.4%
All Units 463.8 -0.8 -0.1% 1.9%
Darwin All Houses 460.2 3.8 1.2% -6.2%
All Units 362.2 -2.2 -2.4% -4.2%
Hobart All Houses 453.8 3.2 0.5% 3.7%
All Units 408.9 3.1 -1.4% 12.2%
National All Houses 450.0 1.0 -0.2% 0.7%
All Units 365.0 -5.0 -1.6% 1.4%
Cap City Average All Houses 562.0 -1.0 -1.2% 0.4%
All Units 441.0 1.0 -0.2% 0.0%
Source: www.sqmresearch.com.au
SQM’s calculations of vacancies are based on online rental listings that have been advertised for three weeks or more compared to the total
number of established rental properties. SQM considers this to be a superior methodology compared to using a potentially incomplete sample
of agency surveys or merely relying on raw online listings advertised. Please go to our methodology page for more information on how
SQM’s vacancies are compiled.
Key Points
National residential rental vacancy rate decreased in February 2020 to 2.0% from 2.1%
recorded in January, with the total number of vacancies Australia-wide now at 68,079 vacant
residential properties.
Most states recorded minor decreases in vacancy rates with the exception of Hobart which
recorded a 0.3% increase. Adelaide’s vacancy rate remained stable at 1.0%.
Sydney has surpassed Darwin recording the highest vacancy rate at 2.9%.
Over the month, Capital city asking rents decreased 1.2% for houses and 0.2% for units for
the week ending 12 March 2020 to record asking rents of $562 per week for houses and
$441 per week for units.SQM Research Managing Director Louis Christopher said "February marks the start to the new year in the property industry and gives us a clearer picture of the rental market. The decline in vacancy rates is a reflection of a seasonal increase in rental demand plus an ongoing decline in dwelling completions and the ongoing increase in population. We are likely to record further declines in rental vacancy rates as 2020 progresses unless the country enters into a prolonged economic depression.”
Queensland: State Treasurer Jackie Trad has pledged that the QLD government will backdate the eviction moratorium to 29 March and has announced emergency rental assistance payments of up to $500 a week for up to four weeks
In March, the effects of the global coronavirus crisis rippled through the Australian property market. The RBA made an out of cycle decision to cut the cash rate to the effective lower bound of 0.25% and the Australian government banned public auctions and open house inspections before announcing a six-month moratorium on rental evictions.
Property prices
In March, the national asking price rose 0.2% for houses and units. Across capital cities, house prices rose 0.7% and unit prices recorded a 0.6% increase.
Year on year, this reflects a 5.3% increase in house prices nationwide and a 4% increase in unit prices nationwide. Across capital cities, this reflects an 8.8% increase in house prices and a 2.1% increase in unit prices.
Sydney, Melbourne, Perth and Darwin recorded increases in asking prices for both houses and units. Conversely, Brisbane recorded an overall decline in property prices compared to the month prior.
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