After the seasonal rise in December, the national vacancy rate is back at its lowest point on record in January – 0.8%, according to the latest data from Domain.
Asking rents are at a historic high, further emphasising the highly competitive nature of our rental market.
The latest figures show that vacant rental listings are 36.1% lower annually at the national level.
It is expected that the rental market tightens in January, as the increased demand absorbs December’s supply boost.
Jan-23
Dec-22
Jan-22
Monthly change
Annual change
National
0.8%
1.1%
1.3%
↓
↓
Combined capitals
0.9%
1.1%
1.6%
↓
↓
Combined regionals
0.8%
0.9%
0.6%
↓
↑
Sydney
1.0%
1.4%
1.9%
↓
↓
Melbourne
1.0%
1.4%
2.7%
↓
↓
Brisbane
0.8%
0.9%
1.0%
↓
↓
Perth
0.3%
0.4%
0.5%
↓
↓
Adelaide
0.3%
0.4%
0.3%
↓
–
Hobart
0.5%
0.4%
0.2%
↑
↑
Canberra
1.5%
1.7%
0.7%
↓
↑
Darwin
1.3%
1.4%
0.9%
↓
↑
Capital cities
Vacancy rates declined across most of the capitals in January, with the exception of Hobart.
According to Domain’s Vacancy Report for January:
“Low supply is driving a landlords’ market across all capital cities, worsening an ongoing rental crisis in many parts of the country.
The continued growth in asking rents, along with increasing demand, exacerbates a highly competitive environment for tenants.
Demand pressures have been fuelled by the return of international and domestic travel, overseas migration and foreign students, and the recovery of temporary visa holder numbers.
Recent changes by China’s Ministry of Education to stop acknowledging degrees gained online will also see a surge in demand for rentals as students return for in-person classes.”
Sydney
Well, after recording a rise in the previous two months, Sydney‘s vacancy rate is back at a record low of 1.0%.
Further, unit rents surged 4.5% over the quarter to a record high, and continue to outpace houses.
Of course, this was driven by the decline in rental stock, which was at a record low for the month of January, tracking 44% lower annually.
Melbourne
Meanwhile, Melbourne’s vacancy rate decreased to a new record low of 1.0%.
It continues to see the greatest annual fall in rental listings of the capitals, down 61% annually and an all-time low for the month of January.
Brisbane
Brisbane’s vacancy rate dropped in January but remains high compared to most of 2022.
The drop is driven by a fall in the number of vacant rental listings, as expected in January.
But it appears to be moving away from the highly competitive conditions which tenants saw last year.
Jan-23
Monthly change
Annual change
National
20,939
-20.4%
-36.1%
Sydney
6,135
-28.0%
-44.0%
Melbourne
4,830
-26.2%
-61.1%
Brisbane
1,884
-15.0%
-25.9%
Perth
630
-12.0%
-35.3%
Adelaide
362
-18.5%
-12.6%
Hobart
123
11.8%
105.0%
Canberra
581
-7.0%
90.5%
Darwin
218
-10.3%
29.0%
Combined capitals
14,763
-24.0%
-47.0%
Combined regionals
6,176
-10.2%
25.1%
Other capital cities
Perth and Adelaide saw a decline in vacancy rates in January and are the most competitive cities for potential tenants, at 0.3%. Perth is at a record low, while Adelaide is 0.1 percentage points higher than the record low of 0.2% last seen in October 2022. Both cities’ rental stock declined annually and are at all-time lows for the month of January.
Darwin’s vacancy rate fell over the month but is higher annually. The number of vacant rental listings decreased but is up annually.
Hobart was the only city to see a monthly rise in its vacancy rate – a six-month high. This was driven by a boost in rental listings both monthly and annually, which are at their highest point since December 2020.
Canberra’s vacancy rate declined in January but remains high historically and is only 0.3 percentage points off the record high seen in 2019. The number of vacant rentals fell over the month but is up annually.