Rental Vacancies Drop the Largest in a Year

The national rental vacancy rate recorded its largest drop in more than a year last month, falling by 0.14 percentage points to just 1.10 per cent

The share of rental properties vacant and available is now 54 per cent lower compared to the start of the pandemic, according to the latest data from PropTrack.           

Sydney’s rental conditions deteriorate further in August, with its vacancy rate falling by 0.19 percentage points to 1.26 per cent.

Melbourne’s rental vacancy rate hit 1.19 per cent in August after falling 0.10 percentage points over the month.

In Brisbane, just 0.84 per cent of rental properties were sitting  vacant in Brisbane, reflecting a decline of 0.05 percentage points over the month.

Adelaide and Perth remain the tightest rental markets in the country with vacancies sitting below 0.7 per cent in both cities.

While Canberra had the highest rental vacancy rate of any capital city at 1.72 per cent, it recorded the sharpest monthly drop, falling 0.26 percentage points.

Rental vacancy rates, August 2023 (percentage points)

▲ Source: PropTrack

And Darwin was the only city to with a rental vacancy increase, up 0.17 percentage points over August to 1.70 per cent.            

“It became even harder to rent a property in August, with the national vacancy rate falling to a new low,” PropTrack economist Anne Flaherty said.

“There are no signs rental conditions are easing, with the vacancy rate now sitting below 1 per cent in three of Australia’s capital cities.

“Across Australia, the share of available rental properties has fallen by more than half since the start of the pandemic.

“The supply of vacant rental properties in regional areas has also deteriorated, with the vacancy rate falling to just 1.1 per cent.

“Regional SA and Queensland have the tightest rental markets, with vacancy sitting below 1 per cent.

“Rents are predicted to continue rising off the back of these incredibly low vacancy rates, which are driving up competition for properties.”