Renters in Melbourne City are the most likely to come out of the impeding changeover season unscathed, with the suburb having the highest vacancy rate (AKA the percentage of rental properties currently unoccupied) of any city area in Australia.
According to data released by Domain, the national vacancy rate has entered a third month sitting at an all time low of 0.8 per cent, and with a highly competitive changeover season anticipated renters could gain an advantage by knowing in which suburbs to look.
Domain data showed that for Melbourne, the city had the most availability with a vacancy rate of 3.1 per cent. Other strong suburbs included Stonnington, Whitehorse and Melton.
In Sydney, the suburbs with the most rentals available were Dural and Wisemans Ferry.
Rose Hill, McGraths Hill and Ku-ring-gai were also good options, data showed.
Domain Chief of Research and Economics Dr Nicola Powell said the changeover period in Australia was usually January to February there was a higher frequency of turnover in rental properties during this time.
“So while the current vacancy rate is holding steady, the record low rate is concerning for renters with the changeover period starting,” she told PEDESTRIAN.TV.
“This limits their options, keeps competition tough, and can lead to higher rent costs, added stress during the transition, and weakened negotiating power for renters.
“That’s why while we anticipate a seasonal increase in rental supply in the coming months, this is shaping up to be one of the most challenging peak changeover periods tenants have ever experienced.”
A healthy vacancy rate was considered to be about 3 per cent.
For overall cities Melbourne and Sydney had the most options for renters with a vacancy rate of 1 per cent, whereas Perth and Adelaide renters were the least likely to secure a house, with vacancy rates across the two cities averaging just 0.8 per cent.
However, average views per rental listing have declined, with Powell saying this could indicate it is currently slightly easier to find a house.
“We are seeing signs of stabilising conditions in some markets – Sydney, Melbourne and Brisbane are experiencing a slight increase in vacancy rates,” she said in a statement.
“In the upcoming months, while we do expect to see a seasonal lift in vacancy rate as rental supply traditionally increases, it will be met with higher demands as the changeover period kicks off.”
Powell said it had been a tough year for renters and anticipated the rental market to reach a “tipping point” next year.
“In 2024, we do anticipate the rental market to reach a tipping point driven by stretched affordability – more renters opting for house shares and first-home buyer incentives will help transition some to being owners,” she said.
Vacancy rate by city
- National – 0.8 per cent
- Sydney – 1.0 per cent
- Melbourne – 1.0 per cent
- Brisbane – 0.9 per cent
- Perth – 0.3 per cent
- Adelaide – 0.3 per cent
- Hobart – 0.8 per cent
- Canberra – 1.4 per cent
- Darwin – 1.5 per cent
