Australia’s rental Properties is tightening, finally reaching pre-Covid levels, however some suburbs are faring better than others.
The vacancy rate fell in May for the second consecutive month and now sits at 1.7 per cent. The last time rates were this low was February, 2020 according to research by Domain.
The report showed Sydney’s vacancy was at March, 2020 levels and Melbourne, while considerably high, was rapidly falling from its 5.4 per cent peak in December last year.
Adelaide and Brisbane had the lowest level of vacancy since the records began in 2017 while Canberra and Perth were close to record multi-year lows.
Worst places for rental property owners
| Rank | Sydney Vacancy | Melbourne Vacancy | Brisbane, Gold Coast Vacancy | Perth Vacancy | Adelaide Vacancy |
|---|---|---|---|---|---|
| 1 | Paramatta 4.6% | Melbourne City 8.6% | Brisbane Inner 3.4% | Perth City 1.4% | Adelaide City 4.7% |
| 2 | Auburn 4.4% | Stonnington-East 7.8% | Sherwood-Indropilly 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 3.9% | 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% |
Best places for rental property owners
| Rank | Sydney Vacancy | Melbourne Vacancy | Brisbane, Gold Coast Vacancy | Perth Vacancy | Adelaide Vacancy |
|---|---|---|---|---|---|
| 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 0.6% | Mornington Peninsula 0.5% | Wynnum-Manly 0.4% | Swan 0.4% | Salisbury 0.2% |
^Source: Domain rental vacancy report, May 2021
Despite performing relatively poorly, Melbourne vacancy rate tightened more than any other capital, from 4.2 per cent in April.
Domain senior research analyst Nicola Powell said extended lockdowns in the state would impact the city.
“Vacant rental listings may increase in regions with a high proportion of people working in the hospitality and tourism sectors,” Powell said.
“Those who have had a significant reduction in hours may be forced to cut costs and move in with family or friends.
“Vacancy rates are also likely to remain particularly weak in areas with a higher proportion of short-term rentals as ongoing outbreaks affect interstate travel and sentiment towards travelling to Greater Melbourne.”
Home owners in Melbourne were trying to get ahead of the curb with the rate of homes selling before auction doubling.
Meanwhile, in a rare occurrence, house prices were on the rise in every capital city during May and 97 per cent of sub-regions.
Article Source: www.theurbandeveloper.com
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