Record Low Vacancies

Record low vacancy rates are continuing to drive rents higher throughout Australia.

Domain’s latest quarterly Rent Report shows that nationally vacancy rates hit a record low 0.7% in the March quarter, with many capital cities well below that level.

Hobart and Darwin have the lowest vacancy rate, with both at just 0.2% – a record low for both cities.

On the back of the low vacancy rates, median house rents are now  $620 and $720 per week and unit rents are $500 and $600, respectively.

Perth has a tight vacancy rate of just 0.3% which helped drive house rents to $740 per week and units to $695 per week.

Adelaide’s vacancy rate dropped to 0.4% with its house rents $640 and units $550, while Brisbane’s vacancy rate dropped to 0.6% with its house rents $680 and units $660.

Sydney’s vacancy rate is 0.8% with house rents up to $800 and units, $750.

Melbourne, with a vacancy rate of 1%, is the only market not to record a record high rent; its rents are just above previous record lows at $590 for houses and $600 for units.

It is also the only capital city where unit rents are higher than house rents.

Domain chief economist Nicola Powell says renters are running out of capacity to absorb higher rents. She predicts rental growth will moderate.