June 12th 2024.
There is some promising news for struggling tenants in Australia's major cities. Recent data has shown a significant decrease in rental prices, with the largest monthly drop in over four years. According to SQM property research, the average asking rent for capital cities is now at $723 per week, a considerable decrease since April 2020. Melbourne's rents have remained steady at $635 per week, while Sydney saw a 1.1% decrease to $844 per week in the 30-day period leading up to June 4.
The largest decrease was seen in Darwin, where weekly rents dropped by 6.3% to $566. On the other hand, Adelaide experienced the biggest increase of 2.1%, with rents now at $593 per week. The national median weekly rent is currently at $624, according to SQM. Sydney still holds the highest weekly rent for houses at $1050, while Hobart offers the most affordable unit rents at $463 per week.
In addition to the decrease in rental prices, there is also a forecasted increase in vacancy rates this winter, providing some hope for renters who have been struggling with skyrocketing rents. The vacancy rate in Australia rose from 1.1% in April to 1.2% in May, with Melbourne and Sydney recording an increase of over 1%. However, SQM managing director Louis Christopher reminds us that this rise is typical for this time of year and should not be overinterpreted.
He cautioned, "Although we have seen a slight easing in vacancy rates for May, the rental crisis is far from over at this point. The immediate outlook is for vacancy rates to continue to rise during winter. This is a normal seasonal trend, so we should not read too much into these increases. Nonetheless, it may bring some relief to tenants who have been struggling to find affordable long-term rental options across the country."
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