Canberra’s rental vacancy rate bucked national trends, increasing in February to sit above two per cent, according to the PropTrack Market Insight Report released today, 11 March.

The report found that the vacancy rate in Canberra was up 0.02 percentage points (ppt) month-on-month in February to sit at 2.09 per cent. 

Darwin, at 2.53 per cent, is the only other capital city in Australia with a vacancy rate above two per cent in February. However, unlike Canberra, rental vacancies in Darwin were down 0.27 percentage points month-on-month.

Canberra is also the only market with a vacancy rate above pre-pandemic levels in March 2020 – up 74 per cent.

At just 0.85 per cent, Perth has the lowest rental vacancy rate of any Australian capital city, followed by Adelaide (0.92), Hobart (1.28), Brisbane (1.30), Melbourne (1.41) and Sydney (1.70).

Adelaide and Perth have the fewest available rentals – less than one per cent of rental properties are currently available. Perth vacancy rates are 70 per cent lower now than pre-pandemic levels.

Sydney and Melbourne rental markets have tightened considerably over the past year following a resurgence in inner-city demand, following the pandemic. Melbourne rental vacancy rates have more than halved, down 1.8 ppt to 1.4 per cent in February. Sydney vacancy rates are down 1.0 ppt, now at 1.7 per cent.

PropTrack reports that nationally, across capital cities and regional areas, rental vacancy rates fell further in February, down 0.1 ppt to 1.47 per cent.

The national rental vacancy rate is now half the level seen before the pandemic and at its lowest level since late 2018, reflecting just how scarce rentals are across Australia.

Key findings from the PropTrack report include:

• Strong demand for rental properties continues to push vacancy rates lower, and prices higher.
• Almost all regions across the country have rental vacancy rates below two per cent – meaning less than two per cent of all rental properties are available for lease. A vacancy rate below two per cent points to extremely tight conditions.
• Rental vacancy rates have fallen markedly over the past year, down 0.6 percentage points. This is a continuation of the trend seen since early 2021. Rental vacancy rates are now half the level seen before the pandemic and the largest capitals are all sitting at their lowest levels since 2018.
• With demand for rentals expected to remain strong, we see no reprieve for tenants in the coming months. These rental market conditions mean rent prices will continue to grow strongly throughout 2023.
• The financial pressure renters across the country are already feeling will be exacerbated over the remainder of 2023.

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