A modest lift in rental vacancy rates, especially for our regional townships, and the uptick in people sharing accommodation delivered a mini reprieve for tenants over the first half of 2023.

However, due to rapid increases in our population plus a decrease in new dwelling completions compared to 2022, the rental market has again tightened.

In light of these developments, Louis Christopher managing director of SQM Research expects the low rental vacancy market to be maintained resulting in a very large increase in homelessness.

Based on SQM data, the national residential property rental vacancy rate fell to 1.2% as at the month of August 2023.

Across the country, the total number of rental vacancies dropped by 3,439 dwellings, bringing the count to 35,425 vacant and available rental properties as the housing rental crisis in Australia continues to intensify.

State by state, the picture was virtually the same, with capital cities Sydney, Perth and Canberra reporting decreases in rental vacancy rates during the month, standing at 1.4%, 0.4% and 1.9% respectively.

Unlike Melbourne, the Sydney CBD fell back to 4.6% after recording an increase in July 2023.

Bucking this trend, Melbourne CBD and Brisbane CBD recorded an increase in rental vacancy rates, standing at 5.2% and 1.8%.

Notable falls in regional areas included:
  • North Coast NSW dropped to 1.6%.
  • Gold Coast Main dropped to 1.3%.
  • Blue Mountains remained steady at 1.5%.

Bucking this trend, Melbourne CBD and Brisbane CBD recorded an increase in rental vacancy rates, standing at 5.2% and 1.8%.

Notable falls in regional areas included:
  • North Coast NSW dropped to 1.6%.
  • Gold Coast Main dropped to 1.3%.
  • Blue Mountains remained steady at 1.5%.
Asking rents up

Over the past 30 days to 12 September 2023, capital city asking rents were up by 0.2% with the 12-month rise standing at 16.1%.

Meanwhile, capital city house rents rose by 0.4% and are recording 12-month increases of 14.9%, while SQM data shows unit rents steady [for the past 30 days] and are higher by 17.4% for the past 12 months.

Other notable rent increases include:
  • The national median weekly asking rent for the combined dwelling is $584.32 a week.
  • The capital city’s asking rent for the combined dwelling is $677.25 a week.
  • The median rent for a capital city house is $779.00 a week.
  • The rent for a capital city unit is $588.00 a week.
  • Most expensive rent is for Sydney houses at $977.65 a week.
  • Most affordable rent is Adelaide units at $432.87 a week.
  • Canberra experienced a minor decrease in rents this month, down by 1.4% for combined dwellings.
  • Asking rent for combined dwellings in Hobart has fallen by 1.2%, primarily driven by a significant decline of 2.2% in all houses rent.
SQM Weekly Rents Index