Advertised rents in Australian capital cities have fallen by the biggest monthly percentage in four years, offering some respite to struggling tenants in a tight market.
New figures from SQM Research reveal that average rents in capital cities fell to $723 last month, marking a 0.5 per cent decline over the past 30 days.
It is the largest monthly drop since April 2020, during the beginning of the Covid-19 pandemic.
The surprising turn is accompanied by predictions that unemployment rates would increase during the winter period.
But SQM Research CEO Louis Christopher said the country’s rental crisis was far from over.
Capital cities have seen their biggest monthly drop in asking rents since April 2020, according to new research. Image: NewsWire/Jeremy Piper
Advertised rents in Sydney fell 1.1 per cent to $844 a week, while Melbourne’s figure was unchanged at $635 a week. Image: NewsWire/David Crosling
“The full-year outlook remains the same in that we expect overall vacancy rates to be tight by 2024, driven by a decline in housing completions relative to ongoing rising demand,” he said.
“However, it could provide some small relief to tenants who are still struggling to find long-term rental accommodation across the country.”
SQM data reveals advertised rentals in Sydney fueled the capital’s decline, falling 1.1 per cent to $844 a week.
Darwin saw the biggest drop, at 6.3 per cent, with rents falling to $566 a week.
Rents in Melbourne were unchanged at $635 per week, while Adelaide saw rapid rent growth as advertised rents rose 2.1 per cent to $593.
The national median weekly rent for a home is now $624 per week.
SQM vacancy calculations, based on online rental listings that have been advertised for three weeks or more compared to the total number of established rental properties.
Sydney continues to have the highest weekly rent for a house at $1,050 per week, while Hobart offers the most affordable unit rents among capital cities at $463 per week.
Vacancy rates in the New South Wales capital are at 1.4 per cent, with 10,039 rental homes unoccupied.
This represents an increase of 1.2 percent.
Melbourne also recorded an increase in its vacancy rate to 1.3 per cent from 1.1 per cent in April this year.
SQM research found the total number of rental vacancies across Australia stands at 35,641 residential properties, up from 33,177 vacancies recorded in April.