Australia’s vacancy rate fell to a staggeringly low 1.0% in March, according to SQM Research, the lowest level since 2006. As the chart shows, the vacancy rate (the share of rental properties without a tenant) has fallen in every capital city over the past year.
When the vacancy rate is 3% or above, it’s a tenant’s market – as in Sydney and Melbourne a year ago
When the vacancy rate is between 2% and 3%, it’s a balanced market – as in Sydney and Melbourne in February
When the vacancy rate is under 2%, it’s a landlord’s market – as in every capital city right now
When landlords have the upper hand, rents tend to rise. Across Australia, rents have jumped by an average of 10.7% over the year to April 12, according to SQM Research.