But available properties remain scarce
The national rental vacancy rate increased by 0.08 percentage points to 1.3% in May, marking the highest rate since July 2023 and the first instance of three successive monthly improvements since late 2020.
The latest PropTrack Market Insight Report showed improved rental vacancy rates in many areas, with Sydney recording a 0.16 percentage point increase in vacancy rates and the ACT experiencing a 0.18 percentage point rise last month.
Perth recorded the largest increase over the past three months with a 0.40-percentage-point jump. Despite these increases, PropTrack noted that rental availability remains low across all markets, with only the ACT seeing a higher share of available rentals than before the pandemic.
Adelaide and Brisbane continue to face the tightest rental market conditions, but renters in these cities saw a slight easing in May after a prolonged period of difficulty.
Regional markets saw a modest rise of 0.02 percentage points compared to the capitals, maintaining a lower vacancy rate of 1.26%.
“While any easing in conditions will be welcomed by renters, available properties remain very scarce with the vacancy rate at around half the levels seen before the pandemic,” said Paul Ryan (pictured), senior economist at PropTrack. “This means competition for rentals will remain strong and rents will continue to increase.
“The easing in conditions over the past three months has been most evident in Perth, Sydney and the ACT, with Perth seeing a substantial improvement after very tough conditions recently.
“While availability remains low across all markets, Adelaide and Brisbane remain the toughest for renters, with rental vacancy rates of 1.03% and 1.11%, respectively. We expect renters will face continued difficulty securing rentals and strong rent growth over the rest of 2024 in these markets.”
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