Australian capital city rents have biggest monthly fall in over four years but crisis

Average asking rents in Australia's capital cities fell 0.5% in May, the largest percentage monthly decline in more than four years.

New data released by SQM property research shows the fall in average capital city rents - to $723 in May - was the largest monthly percentage decline on that measure since April 2020.

Median figures showed rents in Sydney fell by 1.1% to $844 a week in the 30 days to 4 June, while Melbourne's asking rents remained stable during that period at $635 a week.

The largest monthly decline was in Darwin, where rents fell by 6.3% to $566 a week. Adelaide experienced the largest rise, with rents up 2.1% to $593 a week.

SQM found the national median rent for a dwelling was $624 a week. Sydney still has the highest weekly rent for a house, at $1,050.

The national vacancy rate increased from 1.1% in April to 1.2% in May. Sydney and Melbourne also experienced increases in the number of houses available, with the vacancy rates rising to 1.4% and 1.3%, respectively.

The SQM managing director, Louis Christopher, said the research group had "recorded an easing in rental vacancy rates for May, but the rental crisis is still far from over at this stage".