Vacancy rates fall again in the new year

Rental availability declined further in January, with the national vacancy rate falling to 1.09 per cent.

According to the latest PropTrack Market Insight report, the vacancy rate for the combined capital cities decreased 0.08 per cent to 1.08 per cent.

“The share of rental properties sitting vacant has been trending down for three years, from 3 pre cent in April 2020 to just 1.09 per cent in January 2024,” PropTrack Economist Anne Flaherty said.

“There are now 54 per cent fewer homes sitting vacant compared to the onset of the pandemic.

“Tenants across Australia’s capital cities saw the sharpest drop in vacancy, while conditions eased slightly across most regional areas.”

That rise in regional areas was a 0.04 per cent increase to 1.10 per cent. 

Of the capital cities, Sydney recorded the largest fall in its vacancy rate, down 0.19 per cent to 1.2 per cent.

Meanwhile Melbourne’s vacancy rate reached a record low 1.15 per cent, after falling 0.04 per cent over the month. 

Brisbane, Hobart and Canberra also saw rental conditions worsen over January, while conditions eased in Adelaide and Darwin.

Darwin has the highest of the capital city vacancy rates at 2.69 per cent, while Perth’s is the lowest in the country at 0.76 per cent.

It held relatively steady in January with a rise of just 0.02 per cent. 

“With few rental properties currently vacant, tenants are facing stiff competition,” Ms Flaherty said.

“This is likely to drive rents higher over the course of 2024, though we expect the pace of growth to slow.”

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