According to Domain’s July rental vacancy rate report, vacancy rates across half of the capital cities fell in July amid the competitive rental market and escalating asking rents. 

Brisbane, Hobart, and Canberra were the three capitals that remained steady in July while Darwin was the only city to record an increase. 

Domain chief of research and economics Dr Nicola Powell said vacant rental listings throughout the country are 45% lower over the year. 

“The rental market firmly remains in favour of landlords’ across every capital city with a shortage in rental supply driving up asking rents and further escalating competition between tenants," she said. 

“While vacancy rates have fallen in July, we could see rental conditions stabilise in the coming months with the rise of investment activity helping to alleviate tightening conditions.”

Jul-22 Jun-22 Jul-21
National 0.9% 1.0% 1.7%
Combined capitals 1.0% 1.1% 2.1%
Combined regionals 0.7% 0.7% 0.7%
Sydney 1.3% 1.4% 2.4%
Melbourne 1.4% 1.5% 3.5%
Brisbane 0.6% 0.6% 1.2%
Perth 0.5% 0.6% 0.7%
Adelaide 0.2% 0.3% 0.6%
Hobart 0.5% 0.5% 0.5%
Canberra 0.8% 0.8% 0.7%
Darwin 0.6% 0.5% 0.6%

Source: Domain

How does your city fare in the current rental market? 

Australia’s largest city has fallen to a record low vacancy rate of 1.3%, worsening conditions for renters amid a highly competitive environment.

Across Sydney, vacant rental stock fell to its lowest level since April 2017 and is tracking 47.2% lower compared to the same time last year.

Sydney unit rents in July are now higher than at the start of the pandemic and are currently on track to overtake the 2018 record high next quarter if the trend continues at the current rate. 

In Melbourne, rental vacancy rates dropped for the seventh consecutive month to 1.4%, the lowest point recorded since March 2019. 

If the downward trend continues, Melbourne’s vacancy rate has the potential to overtake the 2018 record low which sat at 1.1%.

The number of vacant rental listings in the city fell more than any other capital in July, down 59.2% annually. 

In Brisbane, vacancy rates remained at an all time low of 0.6% however were on par with June. 

While available rentals saw an increase over the month, they are still 49.4% lower annually. 

Perth and Adelaide rental markets continue to tighten, decreasing to 0.5% and 0.2% respectively - a record low for both cities. 

In Australia's capital, the vacancy rate hovered at 0.8% for the second consecutive month. Canberra was also the only city to see an annual increase in stock with 17.2%.

According to Domain's report, the introduction of first-home buyer incentives and cooler purchasing conditions should foster the gradual transition of tenants to homeowners, easing rental demand.  

Rank Sydney Melbourne Brisbane & Gold Coast Perth Adelaide
1 Camden (0.2%) Cardinia (0.3%) Strathpine (0.1%) Kalamunda (0%) Playford (0.1%)
2 Blue Mountains (0.4%) Yarra Ranges (0.4%) North Lakes (0.2%) Gosnells (0.2%) Salisbury (0.1%)
3 Richmond - Windsor (0.4%) Nillumbik - Kinglake (0.4%) Gold Coast - North (0.3%) Armadale (0.2%) Port Adelaide - East (0.1%)
4 Campbelltown (0.5%) Frankston (0.5%) Caboolture Hinterland (0.3%) Serpentine - Jarrahdale (0.2%) West Torrens (0.1%)
5 Sutherland - Menai - Heathcote (0.5%) Sunbury (0.5%) Chermside (0.3%) Cockurn (0.2%) Onkaparinga (0.2%)

Source: Domain - City areas with the lowest vacancy rates

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