Strong rental conditions are continuing across the country with vacancy rates steady despite price increases easing.
The latest data from SQM Research revealed that across the country vacancy rates remained at 1.2 per cent in May with the tightest markets held in Perth, Adelaide and Darwin.
Meanwhile, the pace of rental price growth eased, up 0.8 per cent in May compared to 0.9 per cent and 1 per cent increases in the previous months, according to Corelogic.
However, the ease in recent conditions was buoyed by an annual rental increase of almost 10 per cent.
Rental vacancy rates
| City | May 2023 | April 2023 | May 2022 |
| Sydney | 1.5% | 1.4% | 1.7% |
| Melbourne | 1.2% | 1.2% | 2.2% |
| Brisbane | 1.0% | 1.0% | 0.7% |
| Perth | 0.6% | 0.6% | 0.7% |
| Adelaide | 0.6% | 0.6% | 0.4% |
| Canberra | 2.0% | 2.0% | 0.9% |
| Darwin | 0.9% | 1.1% | 0.7% |
| Hobart | 1.6% | 1.6% | 0.5% |
| National | 1.2% | 1.2% | 1.2% |
^Source: SQM Research
SQM Research managing director Louis Christopher said rental vacancy rates were largely steady for the month, notwithstanding another rise in Sydney and Hobart.
“While there has been some easing in rental conditions especially in regional Australia, it is still very much a landlord’s market for most capital cities,” Christopher said.
“We note though, the recent increases in CBD rental vacancy rates. Especially for the Sydney CBD.”
Median rent prices
| City |
Houses Rent |
Monthly change | Units Rent | Monthly Change |
| Sydney | $766 | 1.0% | $677 | 1.5% |
| Melbourne | $560 | 1.3% | $524 | 1.6% |
| Brisbane | $636 | 0.4% | $539 | 1.2% |
| Adelaide | $561 | 0.6% | $451 | 0.9% |
| Perth | $602 | 1.0% | $525 | 1.7% |
| Hobart | $573 | -0.8% | $490 | -0.4% |
| Darwin | $658 | 0.7% | $505 | 0.3% |
| Canberra | $709 | -0.4% | $584 | -0.4% |
| National | $594 | 0.7% | $558 | 1.3% |
^Source: Corelogic
Corelogic economist Kaytlin Ezzy said the slowdown in the monthly growth rate for rental prices had contributed to a fall in the annual trend, which dipped below double digits for the first time in 10 months.
However, this was largely being driven by a slowdown in regional markets, where rents increased 0.3 per cent over the month, down from a record monthly growth rate of 1.2 per cent in March 2022.
“Regional rental growth has slowed dramatically from a year ago while capital city rents were up 1.0 per cent in May,” Ezzy said.
“When you break that figure down further by property type, we can see the unit sector is under the greatest pressure, with rents increasing at a faster rate than houses due to their relative affordability.”
Capital city house rents increased 0.9 per cent in May compared to a 1.4 per cent lift for units.