Australia’s national vacancy rate has just hit its lowest point in years, according to new data.
Domain reports that February’s 1.1 per cent average rate of vacant properties represents the tightest rental market country-wide since the company began collecting data in 2017.
February’s low was somewhat predicted after an increasing downward trend. And the current trajectory looks set to continue, with open international borders exerting further pressure on housing.
On a capital city level, all major metropolitan areas saw declines in the number of properties available for rent, except for Adelaide and Hobart, which already had some of the tightest markets and remained steady through the month.
Canberra (0.5 per cent), Brisbane (0.8 per cent), Adelaide (0.3 per cent), Perth ( 0.5 per cent), and Hobart (0.2 per cent) are at their lowest point since Domain records began in 2017. The Tasmanian capital is currently setting the lowest vacancy rate the firm has seen across any capital market.
Sydney and Darwin, meanwhile, are close to hitting multi-year lows, at 1.7 per cent and 0.6 per cent, respectively.
Melbourne is also closing ground on its vacancy rate after a sharp spike during the pandemic. The city is now at its lowest level since March 2020, at 2.1 per cent.
Responding to its latest data, Domain warned there’s no relief for rental seekers in sight: “Australia is on the verge of a rental crisis, as rental demand will continue to sharply rebound following the full reopening of international borders to double-vaccinated visa holders and tourists, following two years of closures.
“The staged approach to borders reopening will have contributed to the drop in vacancy rates in recent months. The resurgence in rental demand will predominantly be in Sydney and Melbourne, the two cities to see the biggest drop in vacancy rates over February.”
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Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.