Rental vacancy rates hit new low, new PropTrack report finds
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Australia’s national rental vacancy rate fell 0.6% down to 1.06% in September according to the latest PropTrack Market Insight Report. It also found that vacant properties are now 55% below March 2020 levels.
Overall, rental vacancies were down in both capital cities and regional areas. Most cities and regions have seen vacancy rates fall on a quarterly basis. The report notes that vacancy rates are now below 1% in three capital cities with other markets potentially joining the list as demand continues to grow.
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Cities
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Vacancy Rate
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Region
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Vacancy Rate
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Sydney
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1.18% (-0.11%)
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NSW
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1.22% (-0.08%)
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Melbourne
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1.15% (-0.6%)
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VIC
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1.10% (0.02)
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Brisbane
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0.86% (0.02%)
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QLD
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0.89% (-0.06%)
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Adelaide
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0.65% (-0.04%)
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SA
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0.65% (-0.05%)
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Perth
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0.71% (0.01%)
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WA
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1.11% (-0.14%)
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Hobart
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1.40% (-0.13%)
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TAS
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1.16% (-0.07%)
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Darwin
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1.80% (0.10%)
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NT
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1.50% (-0.49%)
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ACT
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1.62% (-0.11%)
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Average Regional
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1.06% (-0.06%)
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Average City
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1.06% (-0.05%)
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National Vacancy Rate
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1.06%
(-0.06%)
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Sydney's vacancy rate slid to 1.18%, while Melbourne followed closely with a rate of 1.15% on a monthly basis. Both cities continue a trend of quarterly decline in rental vacancies, mirroring the national trend.
On the other hand, vacancy rates held relatively steady in Brisbane, rising a slight 0.02 percentage points to 0.86%, while Adelaide and Perth recorded the lowest vacancy rates with 0.65% and 0.71% respectively. Hobart saw the sharpest drop in capital vacancies over the month, falling by 0.13 percentage points to 1.4%.
Regional areas haven’t been immune either. Apart from Victoria, regional vacancy rates have dropped, with regional South Australia at 0.65% and Queensland at 0.89%. However, the biggest decline so far has been in the Northern Territory with a monthly fall of 0.45%
How will renters be affected by lower vacancy rates?
While cities and regional areas have seen variable rates of decline, the broadly consistent fall to 1.6% on average points to a tougher rental market.
“Declining vacancy rates are increasing competition for rentals and placing growing pressure on rents.” says PropTrack economist Anne Flaherty. “As a result, rents are predicted to continue rising at above-trend levels over the coming months, particularly in the capitals.”
In the long run, It remains to be seen whether recent legislation and the increasing pipeline of build-to-rent properties will help to alleviate the tight market for both renters and prospective home buyers .
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