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.
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
- Also read:Should you do anything about rising interest rates?
- Also read:City centres are bouncing back – here’s what it means for our unit market in 13 Charts
- Also read:Average time it takes to sell a property has dropped
- Also read:The Sydney regions which have reached their price peak
- Also read:What a change in government means for Australia’s property market
Meanwhile, Brisbane, Darwin and Adelaide are at their lowest vacancy rates since Domain records began in 2017.