Nationally, vacancy rates slipped in January to 1.9 per cent, the lowest vacancy rate since March 2020, prior to the pandemic according to Domain.
Dr Nicola Powell, Senior Research Analyst for Domain, commented:
It is typical for the rental market to tighten in January following a seasonal boost of supply over December.
...Every capital city saw a fall in the vacancy rate from December to January.
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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.
The regions in Australia with the highest vacancy rates continue to be isolated in Melbourne and inner-city regions built up predominantly with apartments.