Australia’s regional rental crisis has peaked, according to SQM Research

The regional rental crisis across Australia has “peaked” with no signs of easing across major capital cities, according to latest data from SQM Research.

The rental crisis has “peaked” across regional Australia, according to SQM Research.

Australia’s rental crisis has “peaked” across regional areas with the latest advice for tenants to move out of the city.

SQM Research has made the bold claim on the back of data that has revealed national residential property rental vacancy rates rose to 1.1 per cent in March 2023.

The SQM report stated that regional rental vacancy rates rose sharply as a “sign of a population flow reversal back to the cities”.

North Coast NSW vacancy rates rose to 1.6 per cent from 1.4 per cent in February, while the Blue Mountains rose to 2 per cent, marking the “peak rental vacancy rate for the region since April 2020”.

The rental crisis has peaked in regional areas such as the Blue Mountains, according to SQM Research

MORE:

Billionaire Elon Musk’s rental crisis at Twitter

‘Controversial’ MAFS wedding venue sold for $20m

10 of the rarest waterfront homes up for sale

It comes as Gold Coast Main rental vacancy rates rose to 1.1 per cent, which SQM states was the highest level recorded since October 2021.

“The rental crisis in Australia’s regions has peaked,” SQM Research’s managing director Louis Christopher said.

“There’s a number of areas now where we are reporting a trough in the rental vacancy rate, so

vacancy rates are rising, and a peak in actual rents.

“It’s a return back to the cities from those who tried to live in regional Australia during the lockdown Covid period. They are coming back as their employer has asked them to come back into the office or they’ve tried regional living … and I suspect a number of them have realised it’s not for them.

SQM Research managing director Louis Christopher.

“This peak also extends to some of our smaller capital cities such as Hobart, where rental vacancy rates rose back over 1 per cent and rents are now down by 1.8 per cent for the past 30 days.”

Mr Christopher said the same cannot be said for Sydney and Melbourne as the “rental crisis rolls on”, with vacancy remaining at 1.3 per cent and 1.1 per cent respectively.

The SQM report revealed over the last month to April 12, capital city asking rents rose by another 2.1 per cent with the 12-month rise at 21.8 per cent.

“Capital City house rents rose by 1.9 per cent and are recording 12 month increases of 18.6 per cent, while unit rents have risen by 2.3 per cent for the past 30 days and are higher by 25.8 per cent for the past 12 months,” the report states.

Hopeful renters checking out a place in the Eastern Suburbs as people flock back to the city. Picture: Jeremy Piper

MORE:

Guilty Hayne’s huge homes sell off

Airbnb savaged over ‘role’ in housing crisis

‘Fairytale’ castle by the coast shocks buyers

“The national median weekly asking rent for a dwelling is $568 a week. The capital city asking rent for a dwelling is $661 a week.

“The most expensive rent is Sydney houses at $962 a week. At the same time the most affordable rent is Adelaide units at $406 a week.”

Mr Christopher said “conditions are very very tight” in Sydney and Melbourne.

“We’ve recorded another strong month of rental increases,” he said.

He said it was driven by people moving back to the city and, in Sydney’s case, the rampant increase in migration.

Houses in Sydney demand the most rent across Australia. Picture: Gaye Gerard

“Most migrants will try Sydney and Melbourne first,” he said. “Given the rapid increase in overseas arrivals, that’s been contributing to the current rental crisis.”

He said SQM’s advice to tenants is to see if they can negotiate with employers to live in regional areas as vacancy rates rise and rents peak.

The total number of rental vacancies Australia-wide now stands at 32,814 residential properties.

Meanwhile, Perth recorded an increase in rental vacancy rates to 0.5 per cent in March, while Hobart rose to 1.1 per cent which SQM states indicates a “peak” in the Hobart rental market.

Hobart was also the only capital city to record a decline in rents for the month, down 1.8 per cent for combined dwellings.

Originally published as Australia’s regional rental crisis has peaked, according to SQM Research