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 Perth 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.