Rents To Keep Rising Rents are tipped to keep rising, as vacancy rates keep dropping. PropTrack data shows nationally, vacancy rates hit a record low in August of 1.1%. The number of vacant rental properties is now 54% lower than it was at the start of the pandemic.
PropTrack, senior economist Anne Flaherty, says vacancy rates continue to drop because investors are leaving the market and fewer new homes are entering the market, at a time when the population is rising. The result is rising rents with PropTrack predicting further increases to come. Australian Bureau of Statistics figures show rents grew 7.6% in the 12 months to July, compared to CPI growth of 4.9%. “We anticipate that rents will keep climbing in the months ahead and there is a real possibility that vacancy rates fall even further,” Flaherty says. Vacancy rates in Sydney fell to 1.26%, Melbourne is 1.19% and Brisbane, 0.84%. Adelaide and Perth are Australia’s tightest markets with vacancies below 0.7%.
