Rising vacancy rates in certain suburbs might just have been a “blip” on the radar, with new data showing the number of available rentals in some areas is falling again.
Suburbtrends’ latest Vacancy Watch Report found that a number of high-profile suburbs around the country had started to see vacancy rates easing only to start tightening again in July.
Suburbs like Manly in Sydney, Surfers Paradise and Broadbeach in Queensland and Carlton, Fitzroy, and Richmond in Melbourne have all seen rental supply rapidly falling away in the past month.
Suburbtrends Founder Kent Lardner said there has been a significant drop in vacancy rates across 50 regions.
“Contrary to the uptick we observed in June, it seems that trend was more of a blip,” Mr Lardner said.
“The market has adjusted downwards again, with decreases recorded in every capital city.”
In the ACT, Woden Valley saw with the most significant decrease in vacancy rates, tumbling from 3 per cent in June to 2.13 per cent in July.
“This notable 0.87 per cent drop was propelled by fewer vacancies in the suburbs of Curtin, Phillip, and Pearce,” Mr Lardner said.
“North Canberra followed closely with a decrease from 3.17 per cent to 2.51 per cent, largely attributable to falling vacancies in O’Connor, Lyneham, Dickson and Watson.
“Other ACT areas, including Tuggeranong, Belconnen and Gungahlin, also recorded decreases, albeit at a slower pace.”
Mr Lardner said in NSW, Sydney – Northern Beaches experienced the steepest decrease in vacancy rates, dropping from 3.6 per cent to 2.68 per cent.
“This trend was driven primarily by lower vacancies in Manly, Dee Why and Mona Vale. Sydney – Ryde and Sydney – Eastern Suburbs also demonstrated notable decreases, with the former dipping from 2.97 per cent to 2.32 per cent and the latter from 3.2 per cent to 2.6 per cent,” he said.
In Queensland, the Gold Coast region registered the largest decrease in vacancies, from 3.1 per cent in June to 2.33 per cent in July.
Key contributors to this downward trend were suburbs such as Southport, Surfers Paradise, and Broadbeach.
Brisbane – South and Sunshine Coast reflected this trend with significant decreases in their vacancy rates.
For South Australia, Adelaide – Central and Hills observed the most substantial decrease, with the vacancy rate falling from 2.95 per cent in June to 2.33 per cent in July.
Suburbs including Adelaide, Norwood and Unley were instrumental in this decline.
Mr Lardner said in Victoria, Melbourne – Inner had the most significant decrease, with the vacancy rate falling from 3.5 per cent in June to 2.68 per cent in July.
“This shift was largely driven by fewer vacancies in suburbs such as Carlton, Fitzroy and Richmond. Melbourne – Inner East and Melbourne – Inner South also registered significant decreases in their vacancy rates,” he said.
In WA, Mandurah and Fremantle experienced the sharpest decline in rental vacancy rates last month.
While in Tasmania, across Hobart, South and West and North East, vacancy rates dropped away the most.
Mr Lardner said the drivers behind these trends are likely multifaceted, involving local socio-economic factors and broader market forces.
“Unfortunately, the tightening rental market may be disheartening news for many renters,” he said.
“This decrease in vacancy rates could make it more challenging for potential renters to find suitable properties.
“While the trend may not come as a shock, especially for those actively searching for a rental property, it certainly doesn’t make their task any easier.”