WHILE April saw vacancies lift for the first time since hitting a 16 year low in January, the worst isn’t over for tenants as asking rents continue to rise.
According to SQM Research, the national residential property vacancy rate for April was at 1.1%, providing a bit more leeway for tenants that March’s 1%, with 39,616 properties available compared to 36,868 in March.
“Rental conditions slightly improved for tenants over April and our weekly rental listings for May suggest another slight easing,” said Louis Christopher, managing director of SQM Research.
The country’s largest cities held stable with Sydney at 1.6%, Melbourne at 1.9% and Brisbane at 0.7%.
While the remainder saw small increases with Perth at 0.7% from 0.5% in the previous month, Adelaide at 0.4% from 0.3%, Canberra at 0.7% from 0.5%, Darwin at 0.6% from 0.5% and Hobart at 0.4% from 0.3%.
“Potentially more property owners are responding to the tight rental market and are looking to lease their properties once again after taking their investment property off the market during the bleakest periods of Covid,” added Christopher.
“So, while it’s way too early to state the worst is over for the national rental market, we may be close to that point.”
At the same time capital city asking rents rose by 1.4% over the month to May 12, an increase of 13.8% over the last 12 months, coming in at $530.9 per week.
For houses that’s a monthly increase of 0.3% and a yearly increase of 15.3% at $641/week.
While at $426/week, units rose by 1.5% for the month and 13.1% over the last 12 months.
“Clearly landlords remain confident as they lifted their asking rents by another 1.4% over the past 30 days,” said Christopher.
Brisbane saw the greatest yearly increase in house asking rents, up 20.9% to $594.8/week, a monthly increase of 0.7%.
While for the month Darwin saw the most significant rise for houses at 6.4% to $689.4/week, that’s a yearly increase of 15.5%.
Meanwhile Sydney house rents reached $792.2/week, a yearly increase of 19.4% and a monthly increase of 0.5%.
In Melbourne asking house rents were up 9.4% for the year and 1.0% for the month at $554.6/month.
In Perth house asking rents were up 9.6% for the year but down 1.3% for the month to $571.8/week.
In Adelaide house asking rents were up 19.8% for the year and up 3.5% for the month to $523.1/week.
Canberra’s house rents were up 10.4% for the year but down 0.1% for the month to $762.4/week.
In Hobart house rents were up 12.4% for the year and up 1.3% for the month to $525.3/week.
While for units Melbourne saw the greatest yearly increase in asking rents, up 15.5% to $418.5/week, a monthly increase of 2.2%.
Brisbane saw the greatest increase in unit rents over the month, up 3.1% to $428.5/week, a yearly increase of 10.6%.
Sydney’s unit asking rents rose by 12.9% for the year and 1.7% for the month to $511.4/week.
In Perth unit rents were up 9.6% for the year but down 1.3% for the month at $571.8/week.
Adelaide’s unit rents were up 8.8% for the year but down 0.3% for the month at $523.1/week.
Canberra’s unit rents were up 12.3% for the year but down 1.1% for the month at $553.2/week.
In Darwin unit rents were up 9.4% for the year and 1.3% for the month at $465.7/week.
Finally, in Hobart unit rents were up 9.7% for the year but down 1.4% for the month at $443.5/week.