Vacancy rates ease but market remains exceptionally tight

You wouldn’t call it a Christmas gift, but vacancy rates eased slightly in November, with the national vacancy rate up .04 percentage points.

According to the latest PropTrack Market Insight Report, the national vacancy rate now sits at 1.07 per cent, which is still 55 per cent lower than in March 2020 and down .07 per cent for the previous three months.

Sydney’s vacancy rate eased the most in November, up .16 per cent to 1.28 per cent, but it remains .03 down over the quarter and .27 per cent lower annually.

Melbourne’s vacancy rate didn’t fair quite as well, but still rose .03 per cent in November to sit at 1.16 per cent.

According to PropTrack Senior Economist Paul Ryan, conditions are still tough for renters searching for a home.

“Despite the easing, vacancy rates have trended down for over three years following strong rental demand and a slowdown in new construction,” he said.

“Conditions will remain tough for those looking to rent in the new year period amid strong demand.”

Adelaide, Perth and Brisbane continue to have the lowest vacancy rates of the capital cities.

Despite a small increase of .03 per cent, Adelaide’s vacancy rate remains at just .70 per cent, while a .05 per cent rise took Perth’s rate to .73 per cent.

Hobart recorded the largest drop in its vacancy rate at .30 per cent, to sit at .92 per cent.

“While rental market conditions remain extremely tight, they eased in November, with the vacancy rate increasing 0.04 percentage points to 1.07 per cent,” Mr Ryan said.

“Sydney showed noticeable easing in conditions, with the rental vacancy rate up 0.16 percentage points in November. 

“Other major capitals also recorded small increases. Over the past year, Sydney (down 0.27 percentage points) and Melbourne (down 0.44 percentage points) have seen the sharpest falls in available rentals, placing exceptional pressure on renters.

Darwin and the ACT have the best conditions for renters with Darwin’s vacancy rate the highest in the country at 2.63 per cent, which was a .18 per cent rise in November.

In the ACT, the vacancy rate dropped .2 per cent in November, to sit at 1.4 per cent.

“Regionally, conditions deteriorated, with the vacancy rate now below 1 per cent,” Mr Ryan said.

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Kylie Dulhunty

Kylie Dulhunty is the Editor at Elite Agent.