Slight easing in Australia's rental vacancy rates in March

In March, Australia witnessed a slight improvement in its rental market, with the national vacancy rate edging up by 0.04 percentage points to 1.11%, according to PropTrack.

Despite this minor increase, renters continue to face an extremely competitive environment, with vacancy rates hovering close to historic lows.

“Rental conditions saw a slight improvement in March, though renters should expect little respite,” said Anne Flaherty (pictured above), economist at PropTrack. “The vacancy rate across Australia’s capital cities remained at the second lowest level on record, at 1.08%, with a slightly better situation in regional areas at 1.17%.”

Capital city breakdown

Here’s a detailed look at how Australia's capital cities fared in terms of rental vacancy rates in March:

• Sydney saw a modest improvement, with its vacancy rate rising to 1.16%, though this is still lower than the previous year.
• Melbourne experienced a slight increase, reaching a 1.12% vacancy rate.
• Brisbane maintained a vacancy rate below 1%, with a small rise observed.
• Adelaide emerged as the toughest city for finding rentals, recording the lowest vacancy rate at 0.83%.

Perth saw the most significant increase in vacancies, yet availability remains tight.

Canberra and Darwin faced declines in vacancy rates, making them tighter markets in March.

“High levels of migration, primarily across Australia’s capital cities, have driven increased demand for rentals, with the number of vacant homes plummeting by 58% in the cities and 47% in regional areas over the past four years,” Flaherty said.

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