Fresh Blow for Tenants as Rents Rise Again

Rental vacancies across Australia held steady in July, according to the latest data.

SQM Research said the national rate had stayed at 1.3 per cent but that total rental vacancies Australia-wide dropped by 852 homes, bringing the count to 38,864 properties.

This was the first monthly decline since January.

Sydney, Perth and Hobart recorded slight decreases in rental vacancy rates during the month, to now be at 1.6 per cent, 0.5 per cent and 1.8 per cent respectively.

Notably, the rental vacancy rate in the Sydney CBD fell back to 5 per cent after recoding recurring month-on-month increases since March 2023.

Darwin was the only capital city with a monthly increase in its vacancy rate—to 1 per cent.

During the same period, the vacancy rates for Melbourne, Brisbane and Canberra remained unchanged.

Most regional areas recorded stable rental vacancy rates. The NSW North Coast remained steady at 1.8 per cent while the Gold Coast also stayed at 1.6 per cent.

Meanwhile, the Blue Mountains recorded a vacancy decrease, dropping to 1.5 per cent.

Asking rents 

During the 30 days to August 12, capital city asking rents rose by 1.2 per cent, it means rents have risen by 18.5 per cent during the past 12 months.

Capital city house rents rose by 1.4 per cent and are up 16.4 per cent over the 12 months, while city unit rents have risen by 1 per cent for the past 30 days and are higher by 20.9 per cent for the past 12 months. 

Vacancy rates, July 2023

^{▲ Source: SQM}

The national median weekly asking rent for combined homes was $578.63 a week, and $675.51 a week for capital cities.

The median rent for a capital city house was $773 a week and for a capital city unit was $590 a week. 

The nation’s most expensive average rent was Sydney houses at $963.92 a week, whole Adelaide units at $443.43 a week were the most affordable. 

Canberra has experienced a minor decrease in rents this month, down by 0.3 per cent for combined homes, while the asking rent for combined homes in Darwin has fallen by 1.8 per cent, primarily driven by a significant decline of 6.8 per cent in all units rent.

SQM Research managing director Louis Christopher said that after the slight easing in vacancies over the first half 2023, these results had been somewhat disappointing for tenants.

“Clearly, acute rental shortages remain with us. And besides more people grouping together to share the burden, there is no significant solution on the horizon,” he said.

“Where possible I recommend tenants consider regional areas once again if their employment enables them to work off-site.

“I also encourage discussion about temporary migration caps, rather than rental caps, which will only make the rental crisis worse over the medium term.”