Rental Market Update: Australian Vacancy Rates Hold Steady for August

As property investors, we’re always monitoring the pulse of the rental market. The recent report from SQM Research, released on August 12, 2024, offers some compelling insights into the current state of Australia’s rental landscape, particularly regarding vacancy rates. 

Vacancy Rates: Holding Firm in a Changing Market 

Despite some fluctuations in rental prices, the national vacancy rate has remained remarkably steady at 1.3%. This persistence indicates that we’re still operating in a tight rental market, even as other factors shift. 

Let’s break down the vacancy rates across key areas: 

• Sydney: Maintained a stable 1.7%, with 12,123 rental dwellings vacant 
• Melbourne: Held steady at 1.5%, with a slight increase to 7,979 vacant dwellings 
• Canberra: Recorded the highest rate at 2.2%, up slightly from 2.1% in June 
• Perth and Adelaide: Tied for the lowest rate at 0.7%, reflecting very tight markets 
• Darwin: Tightened from 0.9% to 0.7%, showing increased demand 
• Hobart: Saw a notable decline from 1.5% to 1.2% 

The total number of vacant rental properties across Australia stands at 39,701, a slight decrease from June but still above the July 2023 figure of 38,864. 

CBD Areas: A Mixed Bag 

Interestingly, CBD areas are showing varied trends: 

• Sydney CBD: Increased from 5.0% to 5.5% 
• Melbourne CBD: Decreased year-on-year from 4.3% to 4.0% 
• Brisbane CBD: Continued strong demand with a low 2.5% vacancy rate 
• Canberra CBD: Dramatic decrease from 4.0% in July 2023 to 2.7% in July 2024 

What This Means for the Market 

According to Louis Christopher, Managing Director of SQM Research: 

“It should be noted of course that rents are still very high and this retracement is minor compared to the massive rise in rents recorded around the country since 2021. And it should also be stated that the rental crisis is still not yet over as we have recorded an ongoing low national rental vacancy rate of just 1.3%.” 

This stability in vacancy rates, even as rental prices see some adjustments, suggests that demand for rental properties remains strong across most of Australia. 

While our focus is on the steady vacancy rates, it’s worth noting some changes in rental prices: 

• Capital cities saw a combined dwelling rent decline of 0.5% over the past 30 days 
• Sydney experienced a 1.0% decrease in combined rents 
• Melbourne recorded a 0.6% decline 
• Brisbane and Perth also saw slight falls of 0.5% and 0.6% respectively 

However, these changes should be viewed in the context of the significant rent increases we’ve seen since 2021. 

Looking Ahead 

The stability in vacancy rates, despite some fluctuations in rental prices, indicates that the Australian rental market remains tight. As property managers, we’ll continue to monitor these trends closely, ensuring we provide the best advice to both landlords and tenants in this dynamic market. 

The persistent low vacancy rates suggest that demand for rental properties remains high, which could help buffer any short-term adjustments in rental prices. For investors, this continued tight market provides some reassurance about the ongoing demand for rental properties. 

Latitude Property makes it easy to search and research investment properties from all over Australia with each and every property displaying the Rental Yield and Suburb vacancy rate. 

To search for your perfect investment property please visit www.latitudeproperty.com.au