Sydney’s vacancy rate has dropped to a record low of 1.1 per cent, with the number of available rental properties more than halving in the past year.
Nationally, Domain’s September Rental Vacancy Report shows the vacancy rate held steady at its lowest rate on record of 0.9 per cent, with the tight conditions a result of broader strength in the market and the number of vacant rental listings falling 48.6 per cent annually.
Sydney was the only capital city to see vacancy rates drop in September, shifting marginally from 1.2 per cent down to 1.1 per cent.
This was exacerbated by a record low number of available listings, which are down 54.8 per cent annually to just 6355 properties.
After eight consecutive months of dropping, Melbourne’s vacancy rate remained steady at 1.3 per cent in September.
This is its lowest level since March 2019, but it has recovered from a 5.2 per cent peak in December 2020.
Melbourne has recorded the biggest annual fall in the number of available rental properties of all the capitals, down 61.4 per cent to 6646 properties.
“All capital cities continue to operate in a landlords’ market, resulting in a highly competitive environment for prospective tenants,” Domain Chief of Research and Economics Dr Nicola Powell said.
“This is largely due to a misalignment between supply and demand, with a lower volume of available rentals driving up rents and worsening competition.
“We are, however, seeing the stabilisation of vacancy rates, which could indicate a turning point for tenants.”
Monthly vacancy rates
|Sep-22||Aug-22||Sep-21||Monthly change||Annual change|
Brisbane, Adelaide, Hobart and Perth’s vacancy rates all remained stable in September, but the Queensland capital’s rate is still at a record low of 0.6 per cent.
The positive news is that it has held at that rate for five months in a row, which indicates the Brisbane rental market could be stabilising.
Adelaide’s vacancy rate remained at 0.3 per cent in September, despite the number of rental listings dropping, while Perth’s vacancy rate held steady at a record low rate of 0.4 per cent.
The volume and change of vacant rentals
|Sep-22||Monthly change||Annual change|
Hobart’s vacancy rate stayed at 0.5 per cent and it was the only capital to see a monthly and annual increase in stock.
Canberra and Darwin were the only capital cities to record a rise in the vacancy rate, with each up 0.1 per cent.
Canberra’s vacancy rate was 1.1 per cent in September, while Darwin’s was 0.7 per cent.
The combined regionals vacancy rate also climbed slightly from 0.6 per cent to 0.7 per cent.
The city areas with the lowest vacancy rates are Bald Hill-Everton Park in Brisbane and Onkaparinga in Adelaide, all at 0.1 per cent.
The highest vacancy rate is in Rouse Hill-McGraths Hill in Sydney at 3.6 per cent.
City areas with the lowest vacancy rates
|Rank||Sydney||Melbourne||Brisbane & Gold Coast||Perth||Adelaide|
|1||Eastern Suburbs – South (0.5%)||Yarra Ranges (0.3%)||Bald Hills – Everton Park (0.1%)||Kalamunda (0.2%)||Onkaparinga (0.1%)|
|2||Bankstown (0.5%)||Knox (0.4%)||Southport (0.2%)||Fremantle (0.2%)||Port Adelaide – West (0.1%)|
|3||Sutherland – Menai – Heathcote (0.5%)||Cardinia (0.4%)||Strathpine (0.2%)||Cockburn (0.2%)||Salisbury (0.1%)|
|4||Mount Druitt (0.5%)||Frankston (0.5%)||Sandgate (0.2%)||Mundaring (0.3%)||Adelaide Hills (0.2%)|
|5||Campbelltown (NSW) (0.6%)||Maroondah (0.5%)||Caboolture Hinterland (0.3%)||Serpentine – Jarrahdale (0.3%)||Gawler – Two Wells (0.2%)|