Sydney’s rental vacancy rates are at their highest levels in 13 years, new data has found.
The data recorded by SQM Research showed that the vacancy rate rose to 2.8 per cent in June with an estimated 19,572 residential rental dwellings vacant.
The current vacancy rate is 0.3 of a percentage point higher than the rate of 2.5 per cent recorded in May and is the highest since SQM Research commenced record-keeping of rental listings.
Managing director of SQM Research Louis Christopher said that a surge in developments and a mild slowdown in population growth was the cause of Sydney’s rental vacancies.
“There is now a greater supply of rental accommodation at a time when the growth in rental demand is probably falling a little,” the MD said.
Mr Christopher said that an uptake in migration towards Queensland would see further population decline and rents are likely to slip further.
“I think this is the only time in my career that I can say with certainty that Sydney is now a buyer’s and a renter’s market, simultaneously.”
Throughout Australia, rates rose to 2.3 per cent, up from 2.1 per cent recorded in May, making the number of vacant properties sitting at 75,757.
Vacancy rates remained steady in Hobart at 4.1 per cent, 3.5 per cent and 0.7 of a percentage point, respectively., Darwin and
Sydney house and unit prices also fell over the month, by 0.8 of a percentage point to $709 a week for a three-bedroom house and unit rents down by 0.2 of a percentage point to $522 a week.
Canberra recorded falls in rents for both houses and units, but rent prices are up by 13 per cent over the past 12 months for houses.
Melbourne house rents also fell by 1.3 per cent over the month, but units rose marginally by 0.1 of a percentage point.
Brisbane, Darwin, Adelaide and Perth houses all recorded small increases, but Adelaide’s units fell slightly by 0.2 of a percentage point to make it the cheapest capital city for unit rentals at $299.60 a week.
Adelaide is also the cheapest capital city to rent a house with rents at $383.10 a week, despite an increase of 0.9 of a percentage point over June.