The one surprising major city where the rental vacancy crisis is over… but there’s more bad news for Sydney and Melbourne
- Rent crisis declared over in Canberra
- Tenants still suffering everywhere else
Canberra is the first city to be freed from the rental vacancy crisis as tenants in the rest of Australia continue to suffer.
New SQM Research data showed the home of commonwealth public servants was the only capital city market where house rents have fallen during the past year.
In April 2023, Canberra’s rental vacancy rate stood at 2 per cent – a level significantly higher than the national average of 1.2 per cent.
SQM Research managing director Louis Christopher said Canberra’s rental vacancy crisis was easing as fewer people who could work from home moved to smaller cities and regional areas.
‘I believe there has been a population exodus back to our larger cities, driven by a return to office requirement set by many office employers,’ he said.
‘The rental crisis is easing in the nation’s regions as well as some of our smaller capital cities, including the nation’s capital, where we are now confident in calling the rental crisis over.’
Canberra is the first city to be freed from the rental vacancy crisis as tenants in the rest of Australia continue to suffer (pictured is the Telstra Tower)
Canberra’s median house rent during the past year has fallen by 0.6 per cent to $757.84 a week, making it Australia’s only capital city market where rents are cheaper than a year ago.
Sydney, by comparison has seen its mid-point house price surge by 21.5 per cent to $963.18 a week, making it by far Australia’s most expensive capital city market.
The rental vacancy rate here is 1.4 per cent.
Melbourne’s median house rent has risen by 20.8 per cent to $671.53, in a city where the rental vacancy rate is 1.2 per cent.
Australia’s two big cities, Sydney and Melbourne, are also absorbing most of the new overseas migrants.
Sydney by comparison has seen its mid-point house price surge by 21.5 per cent to $963.18 a week, making it by far Australia’s most expensive capital city market (pictured is a rental queue in Bondi)
Treasury Budget papers forecast Australia taking in a record 400,000 new migrants in 2022-23 following by another 315,000 in 2023-24.
Over five years, 1.495million people are expected to arrive in Australia from skilled migrants to international students.
For that reason, Mr Christopher is expecting the rental crisis to continue in the bigger capital cities.
‘Going forward, it is way too early to call the rental crisis over in our larger capital cities,’ he said.
‘The building slump, combined with extremely strong population growth rates, will see to it there will remain an overall shortage of rental properties.’
