Powered by MOMENTUM MEDIA
realestatebusiness logo

Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Falling vacancy rates signal return to cities: Domain

By Bianca Dabu
04 May 2021 | 1 minute read
Falling vacancy rates signal return to cities

Rental vacancy rates have fallen across Australia’s capital cities, indicating that the worst of the COVID-19-induced downturn could be over for landlords, a new report has revealed.

The latest figures from Domain have shown that the national vacancy rate is now below pre-pandemic levels. It’s dropped to 1.8 per cent in April 2021 — the lowest since March 2020 — following three consecutive months of steady rates.

Every capital city, except Melbourne, saw an annual decline, with Hobart recording the lowest vacancy rate at 0.5 of a percentage point, followed by Adelaide and Darwin at 0.6 of a percentage point, and Canberra and Perth at 0.8 of a percentage point.

Advertisement
Advertisement

Brisbane, Sydney and Melbourne have trended higher, with vacancy rates sitting at 1.4 per cent, 1.8 per cent and 4.2 per cent, respectively. 

According to Domain’s senior research analyst, Dr Nicola Powell, the sustained low vacancy rates across the smaller capitals mean that conditions will remain tight for tenants, with strong competition putting pressure on asking rents. 

Lowest and highest vacancy rates in each capital city

Capital city

Lowest vacancy rate

Highest vacancy rate

Sydney

Camden (0.3%)

Auburn (4.8%)

Melbourne

Mornington Peninsula (0.2%)

Melbourne City (10.2%)

Brisbane & Gold Coast 

Capalaba (0.2%)

Brisbane Inner (3.8%)

Perth

Wanneroo (0.3%)

Perth City (1.6%)

Adelaide

Tea Tree Gully (0.2%)

Adelaide City (4.6%)


Melbourne and Sydney recover

While Melbourne’s vacancy rate did increase annually, it recorded the biggest reduction over the month — from 4.6 per cent in March 2021. The Victorian capital also recorded its lowest vacancy rate since September 2020, and although it remains higher than pre-pandemic levels, the current rate was significantly lower than the 5.4 per cent peak in December 2020.

“Melbourne’s rental market has been affected by two lockdowns in 2020 that resulted in the vacancy rate bouncing twice, the second time higher than the first,” Dr Powell noted.

Of the capital cities, only Sydney recorded a monthly decline along with Melbourne. 

In contrast, Perth, Hobart and Canberra’s vacancy rates all increased from March 2021, while Brisbane, Adelaide and Darwin held steady at multi-year lows.

Ultimately, rental conditions have been shifting across Sydney and Melbourne after they bore the brunt of the impacts of COVID-19, particularly the decline in interstate and overseas migration due to travel restrictions, according to Dr Powell.

Looking ahead, she expects conditions to improve for landlords as vacant rental listings start to decline in these capital cities, flagging that Melbourne and Sydney are both dominating the top 20 areas experiencing a fall in vacant listings. 

“In fact, the regions with the largest fall in rental listings are largely situated within inner-city regions and close to universities with a large concentration of apartments and share houses — a sign that people may in fact be returning to our cities,” Dr Powell added. 

Top 20 areas with biggest drop in vacant rentals

  1. Melbourne City (Melbourne)
  2. Stonnington - West (Melbourne)
  3. Glen Eira (Melbourne)
  4. Sydney Inner City (Sydney)
  5. North Sydney - Mosman (Sydney)
  6. Monash (Melbourne)
  7. Brunswick - Coburg (Melbourne)
  8. Chatswood - Lane Cove (Sydney)
  9. Kogarah - Rockdale (Sydney)
  10. Strathfield - Burwood - Ashfield (Sydney)
  11. Merrylands - Guildford (Sydney)
  12. Essendon (Melbourne)
  13. Maribyrnong (Melbourne)
  14. Boroondara (Melbourne)
  15. Eastern Suburbs - South (Sydney)
  16. Pennant Hills - Epping (Sydney)
  17. Darebin - North (Melbourne)
  18. Ku-ring-gai (Sydney)
  19. Port Phillip (Melbourne)
  20. Banyule (Melbourne)
Falling vacancy rates signal return to cities: Domain
Sydney eastern suburbs reb
lawyersweekly logo

ABOUT THE AUTHOR


Rankings
rankings
JUST RELEASED
May 09, 2022

REB Top 50 Women in Real Estate 2022

REB is thrilled to present the Top 50 Women in Real Estate 2022 ranking, which sets t ... LEARN MORE

rankings
JUST RELEASED
May 04, 2022

REB Top 100 Agents 2022

Now in its second decade, the REB Top 100 Agents 2022 rankings are the most revered s ... LEARN MORE

rankings
JUST RELEASED
May 02, 2022

REB Top 50 Agents NSW 2022

Even a pandemic has not put the brakes on the unstoppable property market in NSW, whi ... LEARN MORE

rankings
JUST RELEASED
April 27, 2022

REB Top 50 Agents VIC 2022

The COVID-19 crisis has not deterred the property market in Victoria, which has been ... LEARN MORE

rankings
JUST RELEASED
April 25, 2022

REB Top 50 Agents QLD 2022

As the property market continues to roar in Brisbane and Queensland, the REB Top 50 A ... LEARN MORE

Coming up

rankings rankings

 

Subscribe to our RPM
mailing list

 

Do you have an industry update?

top suburbs

12 month growth
Mirador
103.33%
Bawley Point
98.13%
Walla Walla
90.7%
Byron Bay
86.67%
Kiama Heights
85.93%
Greta
84.14%
Nulkaba
81%
South Hobart
78.78%
Diddillibah
76.25%
Lennox Head
73.98%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.