The national vacancy rate continues to tumble, hitting a record
low for the second consecutive month.
It fell to 0.8% in October according to Domain’s latest Vacancy
Rate report. The report says between 40,000 to 70,000 rentals
are needed to achieve a balanced vacancy rate of between 2%
and 3%.
Domain chief of research and economics, Dr Nicola Powell,
says dwindling rental stock has visibly suffered because of a
lack of investor activity, ongoing development undersupply and
higher construction costs.
Powell says vacancy rates were low in capital cities and
regional centres. Adelaide and Pert have the lowest vacancy
rate of just 0.3%, while Canberra’s is the highest at just 1.6%.
“(In Perth and Adelaide) Rental supply is at an all-time low,
emphasising the need for a significant boost in supply to see a
change in these tight conditions.” Powell says.
She says investors need to be encouraged into the market to
ease the shortage of rental properties.
