Australia’s vacancy rate has reached another low, down 0.8% in October.

Everything points to a landlord’s market during the month. According to Domain’s latest Vacancy Report, vacancy rental listings also declined, down 48.2% annually while asking rents were on a record-breaking streak of increases.

Of all capital cities, only Brisbane and Darwin reported monthly increases in vacancy rates — such increase, however, did not lift the cities out of rental tightness.

Monthly vacancy rates:
Oct-22 Sep-22 Oct-21 Monthly change Annual change
National 0.8% 0.9% 1.5%
Combined Capitals 0.8% 0.9% 1.9%
Combined Regionals 0.6% 0.7% 0.6%
Sydney 1.0% 1.1% 2.2%
Melbourne 1.1% 1.3% 3.1%
Brisbane 0.7% 0.6% 1.3%
Perth 0.3% 0.4% 0.5%
Adelaide 0.2% 0.3% 0.5%
Hobart 0.3% 0.5% 0.4%
Canberra 1.0% 1.1% 0.8%
Darwin 0.8% 0.7% 0.6%

Data provided by Domain

Sydney, Melbourne’s rental conditions continue to tighten

The city recorded its fourth consecutive month of decline in vacancy rates, which not sit at a record low of 1%.

Rental stock in Sydney dropped to a record low, tracking 53% lower than last year.

Meanwhile, Melbourne have come a long way since the peak in vacancy rates achieved in December 2020 at 5.2% — now, the city’s vacancy level is at 1.1%, which was last seen in 2018.

Among all capitals, Melbourne reported the biggest drop in rental listings at 64%.

Brisbane and Darwin defy shrinking trend

Both Brisbane and Darwin saw an increase in the number of vacant rentals over the month, which resulted in a slight increase in vacancy rates.

Despite the increase, however, their vacancy rates were still below 1%, suggesting continued pressure, particularly for tenants.

Of all capital cities, however, Adelaide remained the tightest rental market — its vacancy rates hit 0.2% over the month. 

Perth's rental conditions were also extremely tight, with the decline in vacant rentals pulling vacancy rates to 0.3%. 

Meanwhile, Hobart and Canberra's vacancy rates fell for the first time over the month since early this year.