Super Tight Rental Stock in Key Australian Cities

Hi all - vacancy rates in all of our main Australian cities have reached super-low rates, with rental stock the tightest it has been, and even lower than it was before COVID.

If you look at the vacancy rate trend chart below, you will see that vacancy rates now (as at March 2022) are at the lowest levels since March 2019 for all capital cities aside from Melbourne which is only just slightly higher but still low overall.

I know me (and other landlords) holding apartments in city areas had to deal with significantly reduced rental returns during 2020 and 2021, however we should be seeing some significantly increased rental returns coming up this year.

 

The widdening of the gap in wealth from those who own property and those who dont. With the price to build increasing the way it is, land shortages and continued immigration of skilled workers / international students to come through, how are we going to keep up with the increased demand?

 

I wouldnt call these vacancy rates super low. 2% is on the low side of balanced, > 0.2% is what I would consider super low

 

Basically agree but with the following observations - Anything under 0.2% is SUPER low. I find 2 to 2.5% balanced. Above 2.5% soft. 0.8% to 1.2% tight, 1.2% to 2% normal but slightly tight. Under 0.8% is when you see more rapid rental gains year on year, plus 5-10 of applications for a vacant rental. Under 0.4% tenants start to panic. Current vacancy rates pasted from the other thread below:

Thirroul 0.3%
Wollongong 0.3%
Warilla 0.4%
Kiama 0.3%
Gerringong 0% (yep zero last month)
Nowra 0.2%
Ulladulla 0.3%

 

Thanks all. My point here was to show that rental vacancies are at their lowest levels in our capital cities in a long time - we can categorise the numbers and ranges however we like of course.

 

You are right. And likewise for much of regional Australia. Rents tight across the board and rent rises coming in most areas.