The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Interested in a Corporate TUD+ Membership? Access premium content, site tours, event discounts and networking opportunities
Interested in a Corporate Membership? Access exclusive member benefits today
Enquire NowEnquire
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Partner Lab
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
3
print
Print
PolicyMarisa WikramanayakeWed 04 May 22

Sydney’s Rental Vacancies Reach Record Low

Overview of a Sydney suburb where rental vacancy rates have fallen to a five-year low.

Sydney’s rental vacancy rates are at their lowest in five years, according to Domain’s latest rental vacancy report.

Now at 1.4 per cent, It is the lowest the NSW capital’s vacancies have been since Domain began collecting data in 2017.

The rate has declined by 0.1 percentage points since March—Melbourne followed suit, dropping to 1.7 per cent.

Compared to rates from April, 2021, all capital cities except Darwin had a decrease with Sydney down by 1.3 percentage points from 2.7 per cent. 

Overall, the national rental vacancy rates have held steady at 1.0 per cent—which is also the lowest rate in Domain’s time.  

“All capital cities continue to operate in a landlords’ market this month, remaining tight and highly competitive for prospective tenants,” the report said. It also predicted that the downward trend would continue.


Vacancy rate changes


April 22
March 22
April 21
Monthly change
Annual change
National
1.0%
1.0%
1.9%
–
↓
Sydney
1.4%
1.5%
2.7%
↓
↓
Melbourne
1.7%
1.8%
4.0%
↓
↓
Brisbane
0.7%
0.7%
1.3%
–
↓
Perth
0.6%
0.5%
0.8%
↑
↓
Adelaide
0.3%
0.2%
0.6%
↑
↓
Hobart
0.4%
0.3%
0.5%
↑
↓
Canberra
0.7%
0.5%
0.8%
↑
↓
Darwin
0.5%0.5%
0.5%
–
–



 ^Source: Domain Rental Vacancy Rates Report, April 2022  

Brisbane’s figures stayed steady at 0.7 per cent with no change since March 2022, but have decreased by 0.6 percentage points from 1.3 per cent since April, 2021.

Melbourne’s figures have fallen by 2.3 percentage points from the 4.0 per cent figure of a year ago.

Perth, Adelaide, Hobart and Canberra have all seen a slight increase in vacancy numbers since March with Perth, Adelaide and Hobart increasing by 0.1 percentage points to 0.6 per cent, 0.3 per cent and 0.4 per cent respectively.

Canberra jumped by 0.2 percentage points to 0.7 per cent.

All four cities’ rental vacancies are below those of a year ago, but Canberra could return to April 2021’s 0.8 per cent figure soon.

Darwin’s figures have shown no change, remaining steady at 0.5 per cent when compared to March, 2022 and April, 2021. 

Areas with highest rental vacancy rates

RankSydney
Melbourne
Brisbane & Gold CoastPerth
Adelaide
1Pittwater (2.5%)
Stonnington East (3.3%)
Jimboomba (1.7%)
Cottesloe Claremont (1.3%)
Adelaide City (1.1%)
2
Ku-ring-gai (2.4%)
Banyule (2.8%)
Brisbane Inner (1.5%)
Perth City (1.1%)
Burnside (0.5%)
3
Rouse Hill–McGraths Hill (2.4%)
Boroondara (2.7%)
Mt Gravatt (1.2%)
Fremantle (1%)
Unley (0.4%)
4
Blacktown North (2.1%)
Whitehorse–West (2.6%)
Sherwood–Indooroopilly (1.1%)
Mandurah (1%)
Prospect–Walkerville (0.4%)
5
Ryde–Hunters Hill (2%)
Stonnington West (2.6%)
Brisbane Inner-West (1%)
Melville (0.8%)
Campbelltown (SA) (0.3%)

 ^Source: Domain Rental Vacancy Rates Report, April 2022    

HIA chief executive for industry policy Kristin Brookfield said the tight rental markets were a concern for renters.

“While new home building activity has increased, there continues to be a shortfall in private rental housing to meet demand,” Brookfield said.

“The outcome of a shortage in supply is an ever-growing increase in demand for both social and affordable rental housing across Australia.”

The RBA on Tuesday raised the cash rate 25 basis points to 0.35 per cent, the first time hike since 2010, creating concern around how people would pay mortgages and rents. New borrowers in Sydney are facing a potential increase of $1000 per month on their mortgage repayments.

Finance Brokers Association of Australia managing director Peter White said there was already concern about whether renters and homeowners could meet rising costs.

Areas with the lowest rental vacancy rates

Rank
Sydney
Melbourne
Brisbane & Gold Coast
Perth
Adelaide
1
Blue Mountains (0.4%)
Sunbury (0.3%)
Nerang (0.2%)
Kwinana (0.3%)
Onkaparinga (0.1%)
2
Camden (0.5%)
Yarra Ranges (0.3%)
Strathpine (0.2%)
Mundaring (0.3%)
Gawler–Two Wells (0.1%)
3
Campbelltown (NSW) (0.5%)
Cardinia (0.4%)North Lakes (0.2%)
Kalamunda (0.3%)
Tea Tree Gully (0.1%)
4
Sutherland–Menai–Heathcote (0.5%)
Casey–South (0.6%)
Narangba–Burpengary (0.2%)
Gosnells (0.3%)
Marion (0.1%)
5
Richmond–Windsor (0.5%)
Knox (0.6%)
Robina (0.3%)
Rockingham (0.4%)
Adelaide Hills (0.1%)

 ^Source: Domain Rental Vacancy Rates Report, April 2022   

“Fifty-seven per cent of people paying a mortgage or rent [in a FBAA survey] said they could “not at all” afford a $300-per-month increase, and this is an increase equivalent to only 1 per cent based on the average home loan,” White said.

“Seventy-five per cent of those surveyed said rising interest rates would put pressure on their financial position while 56 per cent said they would need to look at refinancing their home.” 

ResidentialAustraliado not useSector
AUTHOR
Marisa Wikramanayake
The Urban Developer
More articles by this author
ADVERTISEMENT
TOP STORIES
Exclusive

Brains, Guts and Determination: How Salvo Property Shapes Melbourne’s Skyline

Marisa Wikramanayake
5 Min
Fraser and Partners founder Callum Fraser
Exclusive

Saving Our CBDs: Architect’s Blueprint Paves Way for Office-to-Resi that Works

Leon Della Bosca
8 Min
Exclusive

Watchdog’s Court Loss Throws Spotlight on Union Balancing Act

Clare Burnett
6 Min
Time and Place's The Queensbridge Building at 90 Queens Bridge Street in Melbourne's Southbank.
Exclusive

Innovation Keeps Time & Place’s Southbank Skyscraper Rising

Marisa Wikramanayake
6 Min
Breathe Architecture founder Jeremy McLeod in front of his Featherweight Home design
Exclusive

Nightingale Founder’s Bid for Affordable Architectural Kit Homes

Leon Della Bosca
7 Min
View All >
Exclusive

Brains, Guts and Determination: How Salvo Property Shapes Melbourne’s Skyline

Marisa Wikramanayake
West End Stockwell Vulture Street DA hero
Development

Stockwell Files Tower Plans in West End Stomping Ground

Phil Bartsch
Novus on Victoria Chatswood
Build-to-Rent

Novus Plots Second BtR Tower for Chatswood

Renee McKeown
Novus’ plans for a shop-top build-to-rent skyscraper on Sydney’s Lower North Shore have gone public as sector continues …
LATEST
Exclusive

Brains, Guts and Determination: How Salvo Property Shapes Melbourne’s Skyline

Marisa Wikramanayake
5 Min
West End Stockwell Vulture Street DA hero
Development

Stockwell Files Tower Plans in West End Stomping Ground

Phil Bartsch
3 Min
Novus on Victoria Chatswood
Build-to-Rent

Novus Plots Second BtR Tower for Chatswood

Renee McKeown
2 Min
PBSA DA Hindmarsh Square student accomodation tower
Student Housing

Student-Friendly Adelaide Draws 35-Storey PBSA Proposal

Renee McKeown
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/sydney-s-rental-vacancies-reach-record-low