New data released by SQM Research has revealed the national residential rental vacancy rate declined in February 2020 to 2 per cent from 2.1 per cent recorded in January.

This leaves 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 per cent increase," said Mr Christopher.

At a Glance:

• Hobart was the only state to increase its vacancy rate
• Adelaide's vacancy rate remained the same
• Sydney had the highest vacancy rate at 2.9 per cent

"Adelaide remained stable at 1 per cent vacancy rate.

"Sydney has surpassed Darwin recording the highest vacancy rate in the country at 2.9 per cent, having dropped 0.3 per cent basis points.

"Darwin sits at 2.7 per cent with a 0.5 per cent drop on last month.  

"Canberra’s vacancy rate has declined to 1 per cent and Melbourne is now 1.9 per cent."

The year on year comparison revealed a similar decline when the national rental vacancy rate in February 2019 was 2.2 per cent compared to 2 per cent recorded for February 2020. 

"Only Melbourne, Canberra and Hobart recorded higher vacancy rates compared to this time last year," said Mr Christopher.

"February marks the start to the new year in the property industry and gives us a clearer picture of the rental market." 

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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," said Mr Christopher.

Asking Rents

Over the month, Capital City asking rents decreased 1.2 per cent for houses and 0.2 per cent 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 per cent 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 per cent for houses and 2.5 per cent for units.
 
Over the month, Darwin and Hobart managed small increases for house rents of 1.2 per cent and 0.5 per cent respectively but unit rents has fallen by 2.4 per cent for Darwin and 1.4 per cent for Hobart.

Brisbane recorded decreases in house asking rents of 0.4% but unit asking rents remained stable.

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