The Agency is pleased to present the Quarterly Rental Report giving a snapshot of how residential rental properties are performing across Australian capitals and regional markets.

Given the recent events with COVID-19, it is more important than ever that agents, investors and renters are across how the rental market is performing.

Australia

Rental vacancies rose across Australia with all capital cities seeing an increase in properties available for rent, according to SQM Research

sqm_research_vacancy_rates.jpg

Vacancy rates for April 2020 compared to last month and the same time last year. Photo: SQM Research

Australia has seen a deceleration in the growth of rents, as well as a decline in some areas, which signals that any growth momentum that was happening before COVID-19 will be facing disruption, according to CoreLogic research. 

It is worth noting that rent data for CoreLogic's March quarter would capture little of the impact from COVID-19, where the regulations of social distancing that have been most disruptive to the economy commenced on March 23rd. 

Rental rates across the combined capital cities were 0.3 per cent higher over March, with a weekly median rental value of $471. 

This is $81 higher than the combined regional markets, where the median rental value current sits at $390 per week. 

The difference between capital city and combined regional rents has been trending down fairly consistently since June 2018, as high levels of new supply in capital city regions
slowed rental growth.

corelogic_rental_yields.jpg

Median rents and rental yields over the quarter to March 2020. Source: CoreLogic

Sydney

sqm_research_vacancy_rates_sydney.jpg

Source: SQM Research

At a Glance:

• Vacancy rate for Sydney went from 5.7 per cent in March to 13.8 per cent in April.
• The same time a year ago Sydney's vacancy rate wa 6.5 per cent
• Sydney's median rent is sitting at $577, a rise of 0.3 per cent

According to SQM Research Australia's most populated capital had the highest jump in vacancy rates that they have ever reported on.

"This is one of the largest one month rises ever recorded on our vacancy rates series," said Louis Christopher of SQM Research.

Mr Christopher has laid this squarely at the feet of job losses causing tenants to leave CBD areas, the drop off of international students and the surge of short term accommodation switching to long term accommodation.

CoreLogic data shows median rent sitting at $577 which is a rise of 0.3 per cent for the month and a yield of 2.96 per cent, down from 3.48 per cent at the same time last year.

Melbourne

sqm_research_vacancy_rates_melbourne.jpg

Source: SQM Research

At a Glance:

• The vacancy rate for Melbourne went from 5 per cent in March to 7.6 per cent in April
• Median rents for Melbourne are at $462 which is an increase of 0.3 per cent with a current yield of 3.2 per cent
• The median rents are down from 3.65 per cent same time last year

Not has high an increase as Sydney but Melbourne has also seen a jump in its rental vacancy rate going from 5 per cent in March to 7.6 per cent in April, as per SQM Research figures.

"Melbourne Southbank has risen to 13 per cent," said Mr Christopher.

"The CBD itself rose to 7.6 per cent."  

Core Logic data shows that median rents for Melbourne are at $462 which is an increase of 0.3 per cent with a current yield of 3.2 per cent, down from 3.65 per cent last year.

Brisbane

sqm_research_vacancy_rates_brisbane.jpg

Source: SQM Research

At a Glance:

• Queensland saw the second highest jump in vacancy rate from 5.7 to 11 per cent in April
• Median rents are at $444 leaving it unchanged over the month
• Queensland investors are experiencing a 4.41 per cent yield down from 4.55 per cent last year

The Sunshine State's capital has seen the second highest jump in vacancy rate, according to SQM Research.

It has gone from 5.7 per cent in March to 11 per cent in April.

Median rents are sitting at $444 for Brisbane which hasn't changed for the month, according to CoreLogic, which represents a 4.41 per cent yield, which is down from 4.55 per cent last year.

Perth

sqm_research_vacancy_rates_perth.jpg

Source: SQM Research

At a Glance:

• The rental vacancy rate was 5.8 per cent, a rise from 4.7 per cent last month
• Median rents are at $396 with the highest growth over the month
• The rental yield is 4.3 per cent, up from 4.25 per cent last year.

Over on the west the rental vacancy rate was at 5.8 per cent, a rise from 4.7 per cent last month, according to SQM Research.

CoreLogic shows that Perth median rents are at $396 with the highest growth over the month, compared to the rest of Australian capitals.

The yield is at 4.3 per cent, a rise from last year's 4.25 per cent.

REIWA President Damian Collins said despite the COVID-19 pandemic, they are seeing the number of properties for rent continue to reduce each month to currently sit at a six-year low, with 5,165 properties for rent on reiwa.com.

“Despite the lack of stock, rentals are still in high demand which agents on the ground are seeing by the number of people booking into home opens,” said Mr Collins.

Adelaide

sqm_research_vacancy_rates_adelaide.jpg

Source: SQM Research

At a Glance:

• The rental vacancy rate ended up at 6.6 per cent for April, up from 3.2 per cent in March
• The median rent has risen for the month by 0.3 per cent and is $394
• A 4.5 per cent yield has increased from the same time last year from 4.42 per cent

There was a sharp jump for Adelaide where the rental vacancy rate ended up at 6.6 per cent for April, up from 3.2 per cent in March, according to SQM Research.

"Adelaide bucked the trend (for asking rents) and recorded rent increases for both houses and units," said Mr Christopher.

According to CoreLogic, Adelaide's median rent has risen for the month by 0.3 per cent and is $394, representing a 4.5 per cent yield, which has increased from the same time last year from 4.42 per cent.

Canberra

sqm_research_vacancy_rates_canberra.jpg

Source: SQM Research

At a Glance:

• The rental vacancy rate of 4.6 per cent for April up from 2.2 per cent in March
• Median rents were second only to Sydney, at $576 showing an increase of 0.4 per cent
• A yield of 4.79 per cent is reduced from last year which had a yield of 4.9 per cent.

The nation's capital saw a rental vacancy rate of 4.6 per cent for April up from 2.2 per cent in March, according to SQM Research.

CoreLogic said Canberra median rents were second only to Sydney, at $576 showing an increase of 0.4 per cent, which represents a yield of 4.79 per cent.

This is a reduction from last year which had a yield of 4.9 per cent.

Darwin

sqm_research_vacancy_rates_darwin.jpg

Source: SQM Research

At a Glance:

• The rental vacancy rate was 5.3 per cent in April from 4.7 per cent in March
• The median rent of $448 is an increase of 0.2 per cent over the month
• The yield is 5.86 per cent reduced from 5.95 per cent last year

In the top end the rental vacancy rate was 5.3 per cent in April from 4.7 per cent in March, according to SQM Research.

"Darwin appears to be the only city that has remained relatively stable for the month with increases recorded in house rents of 2.7 per cent but declines in unit rents of 2 per cent," said Mr Christopher.

CoreLogic said Darwin's median rent of $448 is an increase of 0.2 per cent over the month, but a reduction of -1.2 per cent over 12 months.

The yield is 5.86 per cent which is a reduction from 5.95 per cent last year.

Hobart

sqm_research_vacancy_rates_hobart.jpg

Source: SQM Research

At a Glance:

• The rental vacancy rate was 2.5 per cent for April, up from 1.3 per cent for March.
• Hobart showed a reduction in median rent by 0.4 per cent where it is sitting at $472
• The yield at 5.02 per cent is down from last year at 5.08 per cent.

In the southern most capital the rental vacancy rate was 2.5 per cent for April, up from 1.3 per cent for March, according to SQM Research.

CoreLogic said Hobart was the only city that showed a reduction in median rent by 0.4 per cent where it is sitting at $472.

The yield at 5.02 per cent which is down from last year at 5.08 per cent.

Regional areas

Vacancy rates in regional areas were not as dramatic as the capital cities but the pattern was a marked increase in rate for April, compared to March.

Sunshine Coast

sqm_research_vacancy_rates_sunshine_coast.jpg

Source: SQM Research

The rental vacancy rate for April was 2.4 per cent, an increase up from 1.4 per cent in March

Gold Coast

sqm_research_vacancy_rates_gold_coast.jpg

Source: SQM Research

The rental vacancy rate for April was 4.5 per cent, an increase up from 2.2 per cent in March, according to SQM Research

Newcastle

sqm_research_vacancy_rates_newcastle.jpg

The rental vacancy rate for April was 1.7 per cent, an increase up from 1.3 per cent in March, according to SQM Research.

Source: SQM Research

Wollongong

sqm_research_vacancy_rates_wollongong.jpg

Source: SQM Research

The rental vacancy rate for April was 2.2 per cent, an increase up from 1.9 per cent in March, according to SQM Research.

Central Coast, NSW

sqm_research_vacancy_rates_central_coast.jpg

Source: SQM Research

At a Glance:

• The rental vacancy rate was 2.2 per cent for April, up from 1.8 per cent for March.
• The Central Coast showed a reduction in median rent from $495 for a house in March 2020 to $487 in April 2020
• The implied gross yield was stable in March to April 2020 sitting at 3.3 per cent

The rental vacancy rate for April was 2.2 per cent, an increase up from 1.8 per cent in March, according to SQM Research.

Being an alternative for renters to avoid high CBD rents, the Central Coast has shown a stability in the rental market in the early part of 2020.

Good news for renters in that the vacancy rate has increased marginally as median rent has decreased marginally.

Similar to this:

John McGrath – The rental market and Covid-19

Rental market remains tough through January

Rental trends identify changing market cycles