The Australian rental market continued to be favorable to landlords, with the national vacancy rate hitting an all-time low according to Domain records.
The national vacancy rate fell to 1.3% in January, the lowest since Domain began monitoring vacancy rates in 2017.
Economics and Research Area Leader Dr Nicola Powell said all capitals reported lower vacancy rates during the month, at the end of the month. exception of Perth, which maintained its vacancy level.
On an annual basis, only Darwin recorded an increase in the vacancy rate, albeit marginally.
"The rental market is expected to tighten in January after an increase in supply in December, with the end of the year seeing the end of leases and better choice in the whole thing," she said.
"The upturn in demand in January leads to a reduction in rental vacancies during the month."
Jan-22
December 21
Jan-21
MoM?
? year over year
national
1.3%
1.7%
2.0%
?
?
sydney
1.9%
2.6%
2.7%
?
?
melbourne
2.4%
3.2%
4.4%
?
?
Brisbane
1.0%
1.3%
1.5%
?
?
Perth
0.6%
0.6%
0.7%
–
?
Adelaide
0.3%
0.4%
0.6%
?
?
Hobart
0.2%
0.3%
0.4%
?
?
Canberra
0.7%
1.0%
0.8%
?
?
Darwin
0.8%
1.3%
0.7%
?
?
Brisbane, Adelaide and Hobart recorded their lowest vacancy rate since 2017. However, Hobart was the tightest rental market, with a vacancy rate of just 0.2%.
In Sydney, conditions are starting to harden again after two months of rising vacancies.
"Tighter conditions in Sydney could lead to a continued shift towards a landlord's market, with median house rents increasing by 3.4% in the quarter and units by 1%," Dr Powell said.
Of all the capitals, Melbourne's rental market remained relatively the least tight, with the vacancy rate still above 2.4% despite the continuation of the downward trend.
"Although vacancy rates are declining, they have not yet reached pre-pandemic levels, which hovered around 1.6% in 2019," said Dr. Powell.
Meanwhile, several areas of Perth have seen the most substantial increases in vacancy rates despite the city's overall decline.
The table below shows the suburbs in each city that had the highest and lowest vacancy rates during the month.
Suburbs with the highest vacancy rates
Rank
Sydney
Melbourne
Brisbane and Gold Coast
Perth
Adelaide
1
Ku-ring-gai (3.1%)
Stonnington – East (5.4%)
Inner Brisbane (2.5%)
Cottesloe-Claremont (1.1%)
City of Adelaide (2.1%)
2
Parramatta (3.1%)
Whitehorse – West (4.4%)
Sherwood–Indooroopilly (2.2%)
City of Perth (1%)
Burnside (0.5%)
3
Canterbury (2.8%)
Stonnington – West (4%)
Nathan (1.9%)
Cannery (0.7%)
Unley (0.4%)
4
Ryde–Hunter's Hill (2.6%)
Borondara (3.8%)
Kenmore–Brookfield–Moggill (1.7%)
Joondalup (0.7%)
Onkaparinga (0.4%)
5
Hornby (2.5%)
Banyule (3.7%)
Brisbane Interior – West (1.7%)
Freemantle (0.6%)
Holdfast Berry (0.4%)
Suburbs with the lowest vacancy rates
Rank
Sydney
Melbourne
Brisbane and Gold Coast
Perth
Adelaide
1
Richmond–Windsor (0.3%)
Mornington Peninsula (0.4%)
Mudgeeraba–Tallebudgera (0.1%)
Kalamunda (0.2%)
Playford (0.1%)
2
Camden (0.4%)
Yarra Ranges (0.4%)
Nerang (0.2%)
Rockingham (0.3%)
Mario (0.1%)
3
Blue Mountains (0.4%)
Cardinia (0.4%)
Strathpine (0.2%)
Kwinana (0.3%)
Salisbury (0.1%)
4
Wyong (0.4%)
Sunbury (0.5%)
Abalone-Oxenford (0.2%)
Gosnell (0.3%)
Port Adelaide – East (0.1%)
5
Gosford (0.4%)
Manningham – East (0.6%)
Robin (0.2%)
Rooster blight (0.3%)
Tea Tree Ravine (0.2%)
Data provided by
Top Suburbs:
bendigo
,
passage of strings
,
source wood
,
mount gravatt
,
sunshine
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