This article is from the Australian Property Journal archive
AUSTRALIA’S national rental vacancy rate has hit its highest level in over a year, though supply is still sitting 35% below pre-pandemic levels.
According to the latest data from PropTrack, the vacancy rate was up 0.19% over October to 1.36%, reaching its highest point since July 2023, with all markets recording a lift over the month. This comes after rental vacancies tightened for the third consecutive month in September.
“Rental conditions improved in all capital cities and regional markets over October, with the national vacancy rate now 0.21ppt higher than at the same time last year,” said Anne Flaherty, senior economist at REA Group.
Sydney saw the second highest increase in rental vacancy for the month, up 0.31% to 1.57%, following only Darwin. The smaller market was up 0.41% to 1.39%.
Brisbane saw a 0.19% boost to 1.07%, followed shortly by Melbourne with a 0.19% increase to 1.64%.
Adelaide and Perth were both up just 0.07%, hitting 1.13% and 0.97% respectively. While Hobart has the tightest rental market in the country at just 0.82% after a 0.10% increase over the month.
In contrast, the ACT had the highest vacancy rate over October, after a 0.07% increase to 1.89%.
Combined, the capital cities saw a 0.21% increase for the month to reach 1.43% or a 32% increase since the onset of the pandemic in Australia.
The combined regional areas also recorded an increase, up 0.12% to 1.17%, still sitting 45% under rates in March 2020.
“While rental supply improved across both capital city and regional markets in October, there has been greater relief for renters in cities. Over the past year, vacancy rates in capital cities rose by 0.33ppt, while the combined regional areas remain 0.13ppt lower than a year ago,” added Flaherty.
