Home rental markets generally eased over September providing some modest relief for tenants although vacancy rates remain at near record-low levels.
Following a sharp decline in vacancy rates over the previous month, September results were higher for most capitals with a number also reporting an easing in house rents.
Brisbane however was the top monthly performer with weekly house rents rising by 3.1% and the only capital to report an increase in rents over the month.
House rents in Sydney, Perth and Canberra were steady over the month with falls reported by Hobart, Darwin, Adelaide and Melbourne down by 2.7%, 2.2%, 2.0% and 0.9% respectively.
Sydney continues to record the highest weekly asking house rents steady at $750 per week with Hobart still the most affordable at $535 per week.
House vacancy rates were higher in most capitals over September but fell in Brisbane, Hobart and Canberra.
Median Weekly Asking Rents September 2023 – HOUSES
| Rent | Month | Year | Vacancy Rate | Change | |
| Sydney | $750 | 0.0% | 15.4% | 0.7% | ↑ |
| Melbourne | $575 | -0.9% | 17.3% | 0.8% | ↑ |
| Brisbane | $600 | 3.0% | 9.1% | 0.4% | ↓ |
| Adelaide | $560 | -2.0% | 9.8% | ↑ | |
| Perth | $600 | 0.0% | 15.4% | 1.2% | ↑ |
| Hobart | $535 | -2.7% | -2.7% | 0.6% | ↓ |
| Darwin | $683 | -2.2% | 2.8% | 1.1% | ↑ |
| Canberra | $670 | 0.0% | -1.5% | 0.7% | ↓ |
Most capitals continue to report sharp annual increases in house rents with Melbourne up 17.3%.
Canberra annual house rents however have now fallen by 2.7%
September was also a better month for tenants seeking unit rentals with only Sydney reporting an increase – up sharply 4.2% over the month.
Melbourne and Adelaide’s monthly rents were lower by 0.7% and 1.9% respectively with the remaining capitals steady,
Sydney and Melbourne annual unit rents remain sharply higher – up by 31.0% and 25.0% respectively.
Annual unit rents are also significantly higher in the other capitals, with the exception of Hobart where annual unit rents are lower by 1.1% with Canberra higher by just 0.9% and Darwin up 3.0%.
Sydney remains the clear leader for weekly unit rents still at $750, with Hobart and Adelaide the most affordable at $450 per week.
Unit vacancy rates bounced back and increased over the month in all capitals except Sydney.
Median Weekly Asking Rents September 2023 – UNITS
| Rent | Month | Year | Vacancy Rate | Change | |
| Sydney | $750 | 4.2% | 31.0% | 0.9% | ↓ |
| Melbourne | $550 | -0.7% | 25.0% | 1.7% | ↑ |
| Brisbane | $590 | 0.0% | 21.6% | 0.8% | ↑ |
| Adelaide | $450 | -1.9% | 13.2% | 0.4% | ↑ |
| Perth | $550 | 0.0% | 22.2% | 0.6% | ↑ |
| Hobart | $450 | 0.0% | -1.1% | 1.8% | ↑ |
| Darwin | $550 | 0.0% | 3.0% | 1.4% | ↑ |
| Canberra | $550 | 0.0% | 0.9% | 1.6% | ↑ |
Rental markets have eased generally over September following the sharp tightening reported over August that likely reflected surging demand from high levels of international students commencing the second half of the academic year.
Low vacancy rates and rising rents are set to remain a feature of most capital city housing markets for the foreseeable future despite a myriad of government initiatives designed to increase rental supply.
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Article courtesy of Michael Yardney’s Property Update.