Advertised rents in Aussie capitals fell by largest monthly percentage in four years, research

Advertised rents in Australia’s capital cities have fallen by the largest monthly percentage in four years, offering some respite to struggling renters in a tight market.

New figures from SQM Research show that average rents in the capitals fell to $723 last month, down 0.5 per cent in the past 30 days.

It is the largest monthly decline since April 2020, at the start of the crisis COVID-19 pandemic.

This surprising turn is accompanied by predictions that vacancy rates would rise during the winter period.

But director of SQM Research Louis Christopher said the country’s rental crisis is far from over.

Capital cities have experienced the biggest monthly drop in rental prices since April 2020, new research shows. Photo: NewsWire / Jeremy Piper

Advertised rents in Sydney fell 1.1 per cent to $844 per week, while those in Melbourne were unchanged at $635 per week. Photo: NewsWire / David Crosling

“The full-year outlook remains the same in that we expect vacancies to be generally tight in 2024, driven by a decline in residential completions relative to continued growth in demand,” he said.

‘Nevertheless, it could provide some relief to tenants who continue to experience inordinate difficulties in finding longer-term rental properties across the country.’

SQM data shows advertised rents in Sydney drove the capital’s decline, down 1.1 per cent to $844 per week.

Darwin recorded the biggest drop at 6.3 per cent, with rents falling to $566 per week.

Rents in Melbourne were unchanged at $635 per week, while Adelaide recorded rapid rent growth as advertised rents rose 2.1 per cent to $593.

The national average weekly rental price for a home is now $624 per week.

SQM’s vacancy calculations are based on online rental listings that have been advertised for three weeks or more compared to the total number of established rental properties.

Sydney still has the highest weekly rental price for a house at $1,050 per week, while Hobart offers the most affordable rental prices of the capital cities at $463 per week.

The vacancy rate in the NSW capital stands at 1.4 per cent – ​​with 10,039 vacant rental properties.

That means an increase of 1.2 percent.

Melbourne also recorded an increase in the vacancy rate of 1.3 per cent, compared to 1.1 per cent in April this year.

SQM’s research found the total number of vacant rental properties across Australia is 35,641 properties, up from 33,177 vacancies in April.