All capital cities have tighter rental markets than at the same time last year, except Melbourne and Sydney. Melbourne’s vacancy rate is more than double last year’s while Sydney’s remains steady annually, following a COVID-induced bounce during 2020.
Strong exposure to international border closures in Melbourne and Sydney will ensure significantly less demand for rentals for the foreseeable future, at least until international border restrictions are lifted.
Highest Vacancy Rate by State
The regions in Australia with the highest vacancy rates continue to be isolated in Melbourne and inner-city regions built up predominantly with apartments.
Highest vacancy rates across greater capital city areas – January 2021
Rank
Sydney
Melbourne
Brisbane & Gold Coast
Perth
Adelaide
1
Parramatta, 4.8%
Melbourne City, 11.8%
Brisbane – Inner, 4.3%
Perth City, 1.4%
Adelaide City, 5.0%
2
Auburn, 4.2%
Stonnington – West, 8.3%
Sherwood – Indooroopilly, 4.3%
Cottesloe – Claremont, 1.1%
Holdfast Bay, 0.8%
3
Strathfield – Burwood – Ashfield, 4.1%
Stonnington – East, 8.1%
Brisbane Inner West, 3.6%
South Perth, 1.1%
Norwood – Payneham – St Peters, 0.8%
4
Pennant Hills – Epping, 3.8%
Whitehorse – West, 7.6%
Nathan, 2.7%
Canning, 1.0%
Prospect – Walkerville, 0.7%
5
Hornsby, 3.8%
Boroondara, 6.5%
Mt Gravatt, 2.5%
Belmont -Victoria Park, 0.8%
Burnside, 0.6%
Source: Domain Note: 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.
The most tightly held regions in Australia continue to be scattered across smaller capital cities and lifestyle regions.
Lowest vacancy rates across capital city areas – January 2021
Rank
Sydney
Melbourne
Brisbane & Gold Coast
Perth
Adelaide
1
Wyong, 0.3%
Mornington Peninsula, 0.3%
Nerang, 0.2%
Wanneroo, 0.2%
Marion, 0.2%
2
Camden, 0.3%
Yarra Ranges, 0.4%
Coolangatta, 0.2%
Kwinana, 0.3%
Port Adelaide – East, 0.2%
3
Gosford, 0.4%
Cardinia, 0.5%
Caboolture Hinterland, 0.3%
Stirling, 0.4%
Gawler – Two Wells, 0.2%
4
Blue Mountains, 0.5%
Nillumbik – Kinglake, 0.5%
Broadbeach – Burleigh, 0.3%
Swan, 0.4%
Tea Tree Gully, 0.2%
5
Richmond – Windsor, 0.6%
Casey – South, 0.7%
Strathpine, 0.4%
Gosnells, 0.4%
Playford, 0.3%
Source: Domain Note: 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.
At Metropole Property Management we have noticed a significant increase in rental enquiries at our offices in Melbourne, Sydney and Brisbane, and many properties that have been sitting vacant for a while have now been leased.
While there is a shortage of good houses for lease, prospective tenants for apartments are finding they have a greater choice and are being very selective.
This means landlords need to present their properties in their best light and be realistic with the asking rents.
As Metropole specialises in property management our vacancy rates are considerably below the market average, our tenants stay an average of 2 years and our properties lease 10 days faster than the market average.
You deserve a property manager who cares as much about your property as you do, click here to find out more about our services – we will make it easier for you to transfer your management the management of your investment property if you choose to use us.
About Leanne JopsonLeanne 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.
