The latest SQM Research data shows the national residency vacancy rate fell to just 2 per cent in October, its lowest level since March 2014.
SQM Research managing director Louis Christopher said the national vacancy rate is being pushed down by falling vacancies in Australia’s smaller cities.
“In Hobart, there is a severe shortage of rental accommodation with just 78 properties available to rent, and rents are rising quickly, with no slowdown in sight,” Christopher said.
“In Canberra too, where many renters live, there are just 387 rental properties available, putting upward pressure on rents. Melbourne’s vacancy rate has remained at low levels over the year.
“In contrast, we are seeing a surplus of rental properties in Sydney and rental costs are falling, a trend we expect to continue into 2019.”
Hobart’s vacancy rate dropped to just 0.3 per cent. Melbourne’s vacancy rate fell to 1.6 per cent in October from 1.7 per cent in September, with 9320 dwellings available for rent.
Sydney’s vacancy rate remained unchanged at 2.8 per cent in October from September, with 19,454 properties available for rent.
In Brisbane, the vacancy rate fell to 2.7 per cent from 2.9 per cent in September and 3.4 per cent a year ago.
Perth also experienced a significant drop in its vacancy rate from a year ago, down to 3.3 per cent in October from 4.4 per cent last year.
Meanwhile, capital city asking rents for houses rose 0.2 per cent over the month ending 12 November to $533, while unit asking rents increased 0.2 per cent to $438 a week.
Over the year, asking rents for houses rose 0.9 per cent, while unit asking rents fell 0.2 per cent.
Three-bedroom houses in Sydney continue to have the highest asking rents nationwide at $712 a week, while it costs $512 a week to rent a two-bedroom unit, although costs are falling.
Asking rents in Melbourne for houses rose 0.4 per cent over the month to $526 a week, while asking rents for units fell 0.1 per cent to $406.