These are the best and worst suburbs for rental properties

Australia’s rental markets are tightening with the vacancy rate falling in May for the second consecutive month nationally and now sitting at 1.7 per cent according to Domain’s May Vacancy Report.

The last time national vacancy rates were this low was in February 2020, the month before the COVID pandemic caused widespread lockdowns.

This is the equal lowest national vacancy rate since Domain records began in 2017.

Capital City Rental Vacancy Rates

May 2021

May-21 Apr-21 May-20 Monthly Change Annual Change
National 1.7% 1.8% 2.2%
Sydney 2.7% 2.9% 3.6%
Melbourne 3.8% 4.2% 2.9%
Brisbane 1.3% 1.4% 2.4%
Perth 0.8% 0.8% 1.8%
Adelaide 0.6% 0.6% 1.1%
Hobart 0.4% 0.5% 1.2%
Canberra 0.8% 0.8% 1.3%
Darwin 0.5% 0.6% 2.6%
Source: Domain
The vacancy rate represents the portion of available, empty rental properties relative to the total stock of rental property. The rental vacancy rate is based on adjusted Domain rental listings and will be subject to slight revisions over time.

Data provided by domain

According to Domain research the majority of cities recorded a tightening vacancy rate, with Sydney, Melbourne, Brisbane, Hobart and Darwin falling over May.

While Perth, Canberra and Adelaide held steady over the month.

In Sydney, the vacancy rate has returned to pre-pandemic levels, falling from 2.9 per cent to 2.7 per cent which is the same as for March 2020, one month before the pandemic induced a bounce in the vacancy rate to 4 per cent.

In Melbourne, vacancy rates are still high, but they have been falling rapidly from the 5.4 per cent peak in December last year.

For the second month in a row, Melbourne’s vacancy rate tightened more than any other capital, declining from 4.2 per cent to 3.8 per cent.

There were just under 22,000 estimated vacant rental listings at the end of May, a decline of 10 per cent on the previous month.

Obviously, Melbourne’s extended lockdown will once again impact its rental market particularly in regions with a high proportion of people working in the hospitality and tourism sectors

Meanwhile, Brisbane, Darwin and Adelaide are at their lowest vacancy rates since Domain records began in 2017.

Suburbs with the biggest drop in rental vacancies

Areas with the biggest drop in estimated number of vacant rentals
Rank City Area
1 Melbourne Melbourne City
2 Melbourne Stonnington – West
3 Melbourne Glen Eira
4 Sydney Sydney Inner City
5 Melbourne Monash
6  Melbourne Port Phillip
7  Melbourne Yarra
8  Melbourne Whitehorse – West
9  Brisbane Brisbane Inner
10 Melbourne Boroondara
11 Sydney Canada Bay
12 Sydney Auburn
13 Melbourne Brunswick -Coburg
14 Melbourne Dandenong
15 Sydney Ryde – Hunters Hill
16 Brisbane Brisbane Inner – North
17 Melbourne Manningham – West
18 Melbourne Darebin – North
19 Sydney Bankstown
20 Melbourne Essendon
Areas are based on ABS SA3 geography that are located in a capital city GCCSA. These are the areas with the biggest drop in estimated number of vacant rentals.

Data provided by domain

Suburbs with the highest vacancy rates

Highest vacancy rates across capital city areas
May 2021
Rank
Sydney Melbourne Brisbane & Gold Coast Perth Adelaide
1 Parramatta (4.6%) Melbourne City (8.6%)  Brisbane Inner (3.4%) Perth city (1.7%)  Adelaide City (4.7%)
2  Auburn (4.4%) Stonnington – East (7.8%) Sherwood – Indooroopilly (2.5%) Cottesloe – Claremont (1.5%) Prospect – Walkerville (0.9%)
3  Strathfield – Burwood – Ashfield (3.9%) Whitehorse – West (6.1%) Brisbane Inner – West (2.3%) South Perth (1.1%) Holdfast Bay (0.9%)
4  Canterbury (3.6%)  Stonnington – West (5.8%) Nathan (2.2%) Belmont – Victoria Park (1.1%) Norwood – Payneham – St Peters (0.8%)
5  Ku-ring-gai (3.2%)  Boroondara (5.6%)  Mt Gravatt (2.1%)  Canning (1%)  Burnside (0.7%)
Source: Domain
The vacancy rate represents the portion of available, empty rental properties relative to the total stock of rental property. The rental vacancy rate is based on adjusted Domain rental listings and will be subject to slight revisions over time. Areas are based on ABS SA3 geography that are located in a capital city GCCSA.

Data provided by domain

Suburbs with the lowest vacancy rates

Lowest vacancy rates across capital city areas
May 2021
Rank
Sydney Melbourne Brisbane & Gold Coast Perth Adelaide
1 Camden (0.3%) Yarra Ranges (0.2%) Capalaba (0.2%) Kwinana (0.3%) Gawler – Two Wells (0.1%)
2 Blue Mountains (0.4%) Nillumbik – Kinglake (0.4%) Caboolture Hinterland (0.3%) Wanneroo (0.4%) Marion (0.1%)
3 Wyong (0.4%) Maroondah (0.4%) Nerang (0.3%) Serpentine – Jarrahdale (0.4%) Playford (0.2%)
4 Gosford (0.6%) Cardinia (0.4%) Coolangatta (0.3%) Cockburn (0.4%) Tea Tree Gully (0.2%)
5 Campbelltown (NSW) (0.6%) Mornington Peninsula (0.5%) Wynnum – Manly (0.4%) Swan (0.4%) Salisbury (0.2%)

Data provided by domain

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About

Leanne is National Director of Property Management at Metropole and a Property Professional in every sense of the word. With 20 years' experience in real estate, Leanne brings a wealth of knowledge and experience to maximise returns and minimise stress for their clients. Visit: Metropole Property Management


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