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CoreLogic has reported a turnaround in the rental trend witnessed at the beginning of 2024.
“The easing in rental conditions seen over the first half of the year appears to have come to an end, with the proportion of rental properties sitting vacant trending lower since July,” explained Caitlin Fono, research analyst at CoreLogic Australia.
According to the data firm, the national rental vacancy rate fell for the third consecutive month in September, dropping by 0.06 percentage points to 1.34 per cent.
Hobart saw the largest decline in vacancy of any market over the month, falling by 0.26 percentage points to reach 0.63 per cent, representing an extremely tight market and the lowest of any capital market in the nation.
Canberra recorded the second largest drop of the major cities in September, down 0.15 percentage points to 1.74 per cent, while Perth and Brisbane dropped back 0.10 percentage points and 0.06 percentage points, respectively.
Sydney’s vacancy rate dropped to 1.56 per cent, following a decline of 0.08 percentage points over the month.
Melbourne and Adelaide, meanwhile, experienced almost negligible increases at 0.01 percentage point and 0.02 percentage points each, while Darwin was one of the few markets to buck the overwhelming trend, rising 0.29 percentage points in September.
While the latest data is “unwelcome news for renters”, Fono highlighted that in the capitals at least, vacancies are higher than they were a year ago, with the combined rate up 0.22 percentage points year-on-year.
No such silver lining existed in the regions, however, with the combined non-metro markets falling back over the month, resulting in a decline in the overall regional vacancy rate of 0.08 percentage points to 1.12 per cent. The combined regional vacancy rate now sits 0.09 percentage points lower than 12 months ago.
“The gap between capital city and regional vacancy rates has consistently widened over the past five months, with regional vacancy now sitting 0.31ppt below capital city levels,” Fono noted.
That’s not to say that experiences finding a rental in the capitals are much easier than in country towns, as Fono explained that the nation’s rental market is almost unrecognisable from just a few short years ago, no matter where one is looking.
“Compared to March 2020, there were 46 per cent fewer rental properties sitting vacant in September,” she said.
ABOUT THE AUTHOR
Juliet Helmke
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.
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