Australia's rental vacancy rate remained stable in August, with recent closures having different impacts on affected capitals, particularly Sydney and Melbourne.
The latest Domain report showed that the national vacancy rate remained at 1.6%. The rate has been at its lowest multi-year level for three consecutive months.
On a monthly basis, vacancy rates increased in Melbourne, Brisbane, Canberra and Darwin while they remained stable in other capitals.
Domain Research analyst Henry Yu said recent shutdowns have not had the same impact on affected capitals.
"The closures appear to have elicited a mixed reaction in the capital's rental markets in August, which is especially evident when comparing the evolution of vacancy rates in Sydney and in Melbourne, ”said Mr. Yu.
Tale of two cities in confinement
Vacancy rates in Sydney have remained stable at 2.6% since June despite restrictions imposed in recent months.
Mr Yu said affordability constraints in Sydney could prevent tenants in the city from exploring the housing market, thus keeping them in the rental market longer.
CoreLogic figures show that the median home price in Sydney rose 1.8% in August to $ 1.03 million.
"In addition, the rapid rise in prices may have resulted in a reduction in rental stock, as owners seek capital growth from their investment properties," he said.
In contrast, containment puts upward pressure on Melbourne's vacancy rate, which rose for the second consecutive month in August to 3.8%.
This was preceded by a four month downward trend in vacancy levels.
Mr. Yu said this might be the perfect time for tenants to take over the negotiating table.
"Tenants have more choice and more power to negotiate cheaper rents, as the increase in rental supply in some areas is likely to increase asking rents."
However, Mr. Yu believes a similar scenario could occur in Sydney if the lockdowns are extended for a longer period of time, particularly if income begins to be affected.
"While a rent moratorium is in place, the uncertainty of extended closings may cause some tenants to move in with family or friends to cut spending," he said.
Rental markets still tight
Overall, conditions remain tense in most capital city rental markets.
Perth, for example, recorded vacancy rates at the lowest in several years.
Rental markets in Brisbane, Hobart and Adelaide also remained competitive, with vacancy rates nearing multi-year lows.
Darwin maintained its position as one of the tightest markets despite the slight increase in vacant rentals in August.
"Renters will still find it very competitive to get a rental, but the increase in vacant rentals is a good sign that extreme conditions may start to rise slightly for tenants, "said Mr. Yu.
Capital vacancy rate
August 21
Jul-21
August 20
Monthly change
Annual change
national
1.6%
1.6%
2.1%
–
??
Sydney
2.6%
2.6%
3.4%
–
??
Melbourne
3.8%
3.7%
3.9%
??
??
Brisbane
1.4%
1.3%
2.2%
??
??
Perth
0.7%
0.7%
1%
–
??
Adelaide
0.6%
0.6%
0.9%
–
??
Hobart
0.5%
0.5%
0.6%
–
??
Canberra
1.1%
0.7%
1%
??
??
Darwin
0.8%
0.7%
1.3%
??
??
Source: Domain. The vacancy rate represents the share of available and empty rental properties in relation to the total rental property stock. The rental vacancy rate is based on adjusted domain rental listings and will be subject to slight revisions over time.
Data provided by
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