City | Apr-19 Vacancies | Apr-19 Vacancy Rate | Apr-20 Vacancies | Apr-20 Vacancy Rate |
---|
Sydney | 23,837 | 3.4% | 28,734 | 3.9% |
Melbourne | 10,565 | 1.8% | 16.575 | 2.8% |
Brisbane | 8,792 | 2.6% | 9,555 | 2.8% |
Perth | 6,568 | 3.2% | 4,807 | 2.3% |
Adelaide | 2,249 | 1.2% | 2,398 | 1.2% |
Canberra | 811 | 1.2% | 824 | 1.2% |
Darwin | 1,117 | 3.6% | 837 | 2.6% |
Hobart | 185 | 0.6% | 442 | 1.4% |
National | 77,645 | 2.3% | 88,668 | 2.6% |
Capital city asking rents decreased throughout the month from
1.3 per cent for houses but remained stable for units for the week ending 12 May, with asking rents of $537 per week for houses and $428 per week for units.
National combined rents are now recording a 12-month decrease of 3.1 per cent.
Sydney, Melbourne and Perth recorded decreases in asking rents for both houses and units over the month, while Brisbane, Canberra and Hobart recorded decreases in house asking rents but minor increases in unit asking rents.
Darwin appears to be the only city that has remained relatively stable for the month, with increases recorded in house rents of
2.7 per cent but declines in unit rents of 2 per cent.
Adelaide bucked the trend, recording rent increases for both houses and units of 0.1 per cent and 1.4 per cent respectively.
With Australian borders remaining closed to tourists, migrants and international students, and a spike in short-term accommodation being advertised for long-term leasing due to government restrictions on short-term rental arrangements, Christopher said the duration of high rental vacancies could create broader problems down the track.
“If high rental vacancies are sustained throughout the course of the year, then we can expect far deeper falls in rents which will be good news for tenants—but a disaster for landlords.
“There will also be economic consequences with further sharp falls in building approvals likely; thereby risking a major depression in our residential construction sector as well as the rather obvious risks for housing prices.”
The sharp rise in vacancy rates is in line with predictions by Corelogic’s Eliza Owen, who said while Covid-19 is having varied impacts on residential property, arguably the biggest could be in the rental space given that the Australian rental market was “already weak”.
“The impact on different regions will vary, depending on how exposed markets are to tourism, migration and job losses. Several datasets point to inner Sydney and Melbourne being the most affected,” Owen said.