Vacancies Ease, Rents Rise

Vacancy rates have hit their highest rate in nearly two years but remain very tight.

The latest realestate.com.au Market Insight Report shows the national rental vacancy rate increased by just 0.19 percentage points over January to reach a still very tight 1.48%.

That is the largest increase in nearly two years but it remains well below the pre-COVID level of 2.3% five years ago.

Vacancies rose in every market in January according to the data, with capital city vacancies up to 1.5% and regional areas up to 1.4% per cent.

Hobart has Australia’s tightest rental market with its vacancy rate at a very low 0.7%, followed by Perth and Brisbane which are both 1.1%.

Adelaide, Sydney, the ACT and Darwin are all between 1.4% and 1.7%, while Melbourne has the highest vacancy rate of a still very tight 1.8%.

Even though vacancy rates are easing a little, it is not enough to ease demand and slow the rise of rents.

In the quarter to February, median weekly asking rents in Sydney rose to $800, to $710 in the ACT and $700 in Perth and Darwin. Brisbane is $675 per week, Adelaide is $625 and Hobart is $598. Melbourne has the lowest capital city rent of $580.