Australia’s rental vacancy rate is at the lowest point on record, with the market remaining firmly in landlords’ favour according to the latest Domain Vacancy Rate Report.
In June, the national vacancy rate held at the lowest point on record at just 1 per cent, with Sydney and Brisbane again recording record lows of 1.4 per cent and 0.6 per cent respectively.
Adelaide has the lowest vacancy rate of all the capital cities at a miserly 0.3 per cent, while Melbourne’s rate dropped for the sixth consecutive month to 1.5 per cent in June.
Domain Chief of Research and Economics, Dr Nicola Powell said the slight upside was that the national vacancy rate hadn’t changed in four months.
“While it is still very much a landlords’ market and choice of vacant rental is 42 per cent lower than this time last year, it’s positive to see vacancy rates remaining stable for the fourth month in a row and up in some states,” she said.
“It indicates the turning point could be close and renters will start to see more choice in the coming months.”
Ms Powell said the return of overseas migration and international students could continue to place demand pressure on the rental market, but new first-home buyer incentives could see some tenants look to buy their own home, which would ease demand.
Sydney remains at a record low vacancy rate of 1.4 per cent, down from 2.5 per cent a year ago. It has a more competitive market now compared to pre-Covid levels.
There was a slight increase in vacant rental stock in June but levels are still tracking 44.2 per cent lower than June 2021.
The city’s rental market has bounced back, with vacancy rates falling to 1.5 per cent – their lowest point since February 2020.
It’s a significant recovery from the 5.2 per cent high in December 2020.
If this trend continues, Melbourne could reclaim its throne of being a tighter rental market than Sydney, as it was historically pre-pandemic.
Available rentals fell 10 per cent in June and there’s less than half the choice available as at the same time last year.
Brisbane’s vacancy rate is just 0.6 per cent, which is a record low.
Adelaide is in a rental crisis with almost no available rentals. It has a vacancy rate of 0.3 per cent, which has dropped from 0.5 per cent since June 2021.
The Perth rental market has remained tight but steady over the past three months with a vacancy rate of 0.6 per cent.
Hobart and Canberra
Both Hobart and Canberra recorded a slight increase in their vacancy rates in June. Hobart rose from 0.4 per cent to 0.5 per cent, while Canberra increased from 0.7 per cent to 0.8 per cent.
Both capitals have higher stock levels than this time last year.
The Darwin market has remained steady with a rental vacancy rate of 0.5 per cent.