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Australia’s rental market sees a shift as vacancy rates climb to the highest level since mid-2023.
According to the latest PropTrack market insight report, the number of vacant rentals nationally has jumped to its highest level since July 2023.
REA Group senior economist Anne Flaherty’s PropTrack report revealed that the national rental vacancy rate increased by 0.19 percentage points in October to 1.36 per cent, the highest level recorded since July 2023.
Flaherty stated that although rental supply has improved across both capital city and regional markets in October, both markets are still tight.
“Despite the improvement, rental supply remains well below pre-pandemic levels, with 35 per cent fewer properties available for rent,” she said, underscoring the ongoing challenges faced by renters nationwide.
Sydney recorded the second-largest jump in vacancy over the month, increasing 0.31 percentage points to 1.57 per cent, just behind Darwin’s 0.41 percentage point rise to 1.39 per cent.
Melbourne and Brisbane both experienced significant increases in vacancy rates, rising by 0.18 percentage points and 0.19 percentage points, respectively.
Vacancy rates in Adelaide continue to be tight at 1.13 per cent, although there has been an increase of 0.22 percentage points since October 2023.
Rising investor activity in Perth has led to an increase in available rental properties. However, the vacancy rate remains extremely low at only 0.97 per cent.
Hobart continues to hold the lowest vacancy rate in the nation, with only 0.82 per cent of rental properties unoccupied in October.
In the last year, vacancy rates in capital cities increased by 0.33 percentage points, whereas the average rates in regional areas are 0.13 percentage points lower compared to a year ago.
Flaherty noted that the current rental situation on the ground across Australia’s capitals and regions marks a stark change from even a few years ago.
“Compared to March 2020, there were 45 per cent fewer properties available for rent in Australia’s regional areas compared to a 32 per cent drop in the capital cities,” she noted of the latest month’s figures.
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