- Kalamunda had no properties available for rent
- Several Adelaide suburbs had vacancy rates of 0.1%
- Adelaide continued the downward trend from last month's 0.3% to now 0.2%
The past few months have seen cost of living pressures frequently headline news bulletins, and today, another interest rate hike has added fuel to the financial fire.
Further drops in vacancy rates are not welcome news but it is the reality, with the latest data from Domain showing the previous 1% national vacancy rate that held steady for four months has now dropped to 0.9%.
| Jul-22 | Jun-22 | Jul-21 | Monthly change | Annual change | |
| National | 0.9% | 1.0% | 1.7% | ↓ | ↓ |
| Combined Capitals | 1.0% | 1.1% | 2.1% | ↓ | ↓ |
| Combined Regionals | 0.7% | 0.7% | 0.7% | – | – |
| Sydney | 1.3% | 1.4% | 2.4% | ↓ | ↓ |
| Melbourne | 1.4% | 1.5% | 3.5% | ↓ | ↓ |
| Brisbane | 0.6% | 0.6% | 1.2% | – | ↓ |
| Perth | 0.5% | 0.6% | 0.7% | ↓ | ↓ |
| Adelaide | 0.2% | 0.3% | 0.6% | ↓ | ↓ |
| Hobart | 0.5% | 0.5% | 0.5% | – | – |
| Canberra | 0.8% | 0.8% | 0.7% | – | ↑ |
| Darwin | 0.6% | 0.5% | 0.6% | ↑ | – |
Source: Domain.
Data from SQM Research shows much of the same story with the downward trend in vacancy rates seemingly dropping with near unabated ferocity.
According to SQM, Australia began 2021 at a 2% vacancy rate, dropping to a low of 1.5% in November. 2021 was capped off with a small uptick in vacancies at 1.6%. Since the beginning of 2022, vacancies have been floating around the low 1% region.
The latest SQM data shows that, nationally, there are only some 56,000 rental properties listed, with only 1,241 rentals available in Canberra, 16,710 rentals available in Sydney, 337 rentals available in Darwin, 4,659 rentals available in Brisbane, 1,567 rentals available in Adelaide, 14,754 rentals available in Melbourne, 2,668 rentals available in Perth, and 344 rentals available in Hobart.
Weekly rents have also been steadily rising, SQM data showed all house types are fetching over $580 dollars a week in rent, all unit types fetching $450 in rent per week, and the combined figure is $511 per week. That makes it an 11% increase from 12 months ago for house prices, a 12.8% increase for units, and a 12.5% increase in weekly rents for all property types.
It doesn’t look like the case of “give me a home among the gum trees” will help either, with the combined regional vacancy rate dropping from 1.1% in June this year to 1.0% in the latest figures.
Capital cities continue to remain a landlords market, with Sydney now falling to a record low vacancy rate of 1.3%, Brisbane remaining at its record low of 0.6%, Melbourne dropping for the seventh month in a row to 1.4%, Perth dropping from a vacancy rate of 0.6% to 0.5%, and Adelaide dropping even further from 0.3% to 0.2%.
| Jul-22 | Monthly change | Annual change | |
| National | 22,908 | -6.4% | -45.4% |
| Sydney | 7,302 | -9.0% | -47.2% |
| Melbourne | 7,043 | -10.7% | -59.2% |
| Brisbane | 1,495 | 4.3% | -49.4% |
| Perth | 879 | -7.2% | -28.2% |
| Adelaide | 307 | -9.2% | -60.6% |
| Hobart | 106 | -10.2% | -2.8% |
| Canberra | 340 | 1.5% | 17.2% |
| Darwin | 112 | 16.7% | -5.1% |
| Combined Capitals | 17,584 | -8.3% | -51.9% |
| Combined Regionals | 5,324 | 0.4% | -1.4% |
Source: Domain.
Commenting on the current rental environment, Domain Chief of Research and Economics, Dr. Nicola Powell said “Nationally, vacant rental listings are 45% lower over the year and have fallen across most of the capital cities. The rental market remains firmly in favour of landlords’ across every capital city, with a shortage in rental supply driving up asking rents and further escalating competition between tenants. While vacancy rates have fallen in July, we could see rental conditions stabilise in the coming months with the rise of investment activity helping to alleviate tightening conditions.”
If you’re looking for places to avoid, Domain data showed Camden had the lowest vacancy rate for Sydney, followed by Blue Mountains. Melbourne’s suburbs to avoid due to low vacancy rates include Cardinia, Yarra Ranges, and Frankston. Perth suburb Kalamunda had the lowest rental vacancy for the city at 0%.
| Rank | Sydney | Melbourne | Brisbane & Gold Coast | Perth | Adelaide |
| 1 | Camden (0.2%) | Cardinia (0.3%) | Strathpine (0.1%) | Kalamunda (0%) | Playford (0.1%) |
| 2 | Blue Mountains (0.4%) | Yarra Ranges (0.4%) | North Lakes (0.2%) | Gosnells (0.2%) | Salisbury (0.1%) |
| 3 | Richmond – Windsor (0.4%) | Nillumbik – Kinglake (0.4%) | Gold Coast – North (0.3%) | Armadale (0.2%) | Port Adelaide – East (0.1%) |
| 4 | Campbelltown (NSW) (0.5%) | Frankston (0.5%) | Caboolture Hinterland (0.3%) | Serpentine – Jarrahdale (0.2%) | West Torrens (0.1%) |
| 5 | Sutherland – Menai – Heathcote (0.5%) | Sunbury (0.5%) | Chermside (0.3%) | Cockburn (0.2%) | Onkaparinga (0.2%) |
Source: Domain.
The highest vacancy rates across the capital cities include Pittwater at 3% for Sydney, as well as the world-famous Manly at 2.3%. Melbourne’s Maribyrnong also featured a vacancy rate of 1.8%, with Adelaide city being a stand out at 1.1% – the remainder were around 0.4% for the southern capital. Some of Perth’s most prestigious suburbs also made up the list of highest vacancy rates, including Cottesloe, Claremont, Fremantle, and Melville.
| Rank | Sydney | Melbourne | Brisbane & Gold Coast | Perth | Adelaide |
| 1 | Pittwater (3%) | Whitehorse – West (2.2%) | Jimboomba (1.6%) | Cottesloe – Claremont (1.5%) | Adelaide City (1.1%) |
| 2 | Ku-ring-gai (2.6%) | Boroondara (2%) | Kenmore – Brookfield – Moggill (1.3%) | Fremantle (0.9%) | Holdfast Bay (0.4%) |
| 3 | Eastern Suburbs – North (2.5%) | Hobsons Bay (2%) | Brisbane Inner (1.2%) | Perth City (0.8%) | Burnside (0.4%) |
| 4 | Manly (2.3%) | Banyule (1.9%) | Sunnybank (1.1%) | Melville (0.6%) | Mitcham (0.4%) |
| 5 | Rouse Hill – McGraths Hill (2.3%) | Maribyrnong (1.8%) | Centenary (1%) | Belmont – Victoria Park (0.5%) | Prospect – Walkerville (0.3%) |
Source: Domain.
