Australia’s rental crisis continues to worsen, with SQM Research recording a surge in asking rents amid tight vacancies.
While the national vacancy rate rose 0.1% in April to 1.1% on the back of the smaller capital cities (see below table), asking rents nationally soared another 1.4% over the month to be 13.8% higher year-on-year:
According to SQM Research:
While some regions recorded a slight lift in vacancies, rental conditions remain tight with the average regional rental vacancy rate remaining well below 1%.
Over the past month to 12 May 2022, capital city asking rents rose by another 1.4% with the 12-month rise standing at 13.8%. Capital city house rents are recording 12 month increases of 15.3%, while unit rents have risen by 13.1%.
Louis Christopher, Managing Director of SQM Research said:
“Rental conditions slightly improved for tenants over April and our weekly rental listings for May suggest another slight easing. 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. 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. Clearly landlords remain confident as they lifted their asking rents by another 1.4% over the past 30 days.”
With the federal government intent on rebooting the mass immigration ‘Big Australia’ policy, it is likely that the rental situation will get worse before it gets better.
