Renters should prepare for increased competition and rising rental prices as PropTrack’s latest report reveals a third consecutive month of falling vacancy rates across Australia in September 2024, with conditions tightening in both capital cities and regional areas.
Nationally, the rental vacancy rate dropped to 1.34%, with Sydney, Hobart, and Canberra seeing some of the most significant declines.
Listen to the Google Notebook LM “Deep Dive” Analysis of the September Numbers
While capital cities overall have slightly higher vacancies than a year ago, regional markets continue to tighten, with vacancies now 0.31 percentage points below capital city levels.
Hobart now has the lowest vacancy rate at just 0.63%, and regional markets are seeing consistent declines, worsening conditions for renters outside of major cities.
Proptrack Data Q&A
1. What is the current state of the rental market in Australia?
The rental market continued to worsen in September 2024, with vacancy rates declining for the third consecutive month. Both capital cities and regional areas have seen a drop in available rental properties, although the decrease is more pronounced in regional areas.
2. How much did the national rental vacancy rate drop in September 2024?
The national rental vacancy rate fell by 0.06 percentage points (ppt) to 1.34%.
3. Which cities experienced the most significant decreases in rental vacancies?
Hobart saw the sharpest decline, with vacancy rates falling by 0.26ppt to reach 0.63%, the lowest of any market. Canberra also saw a significant drop of 0.15ppt, while Perth and Brisbane recorded smaller decreases of 0.10ppt and 0.06ppt, respectively.
4. Were there any cities where rental conditions did not worsen?
Yes, rental conditions remained stable or slightly improved in Melbourne (+0.01ppt), Adelaide (+0.02ppt), and Darwin (+0.29ppt).
5. How are regional areas affected compared to capital cities?
Regional markets continue to see declining vacancy rates, with a combined regional vacancy rate falling by 0.08ppt in September to 1.12%. The gap between the capital city and regional vacancy rates has widened over the past five months, with regional vacancies now 0.31ppt below those in capital cities.
6. How does the current vacancy rate compare to pre-pandemic levels?
In September 2024, 46% fewer rental properties were vacant compared to March 2020, reflecting the ongoing tightness in the rental market.
7. What are the vacancy rates in major cities?
- Sydney: 1.56%, down 0.08ppt
- Melbourne: 1.85%, a slight increase of 0.01ppt
- Canberra: 1.74%, down 0.15ppt
- Brisbane: 1.21%, down 0.06ppt
- Perth: 0.92%, down 0.10ppt
- Adelaide: 0.94%, up 0.02ppt
- Hobart: 0.63%, down 0.26ppt
- Darwin: 2.50%, up 0.29ppt
8. What does the future look like for renters in Australia?
The report indicates that rental conditions continue to deteriorate, with no signs of immediate relief for renters, as vacancies continue falling across most regions.
