by Sanjeev Sah | Oct 31, 2023 | Market Updates

The national residential vacancy rate dropped to 1.1% in September, according to SQM Research. 

As the table below shows, most capital cities saw their rental markets tighten further during the month, with Sydney, Melbourne and Canberra’s vacancy rates standing at 1.3%, 1.2% and 1.8% respectively.  

CBD areas in Sydney (3.9%), Melbourne (5.0%), and Brisbane (1.7%) saw declines, as did many regional areas including the North Coast NSW (1.4%) and the Gold Coast (1.1%). 

SQM’s managing director Louis Christopher warned there’s little relief in sight for renters.  

“Current net overseas arrivals is suggesting the population is expanding at an annual rate of some 650,000 people, which obviously is keeping pressure on the national rental market, especially given approximately 175,000 new dwellings have been completed for the past 12 months,” he said.  

“What is also noteworthy in September was the return to very tight rental conditions for Australia’s regional townships. It would suggest the population overflow is making many look once more to areas outside the capital cities in order to find shelter.”