Rental supply is on the rise in these areas


key takeaways

Key takeaways

Australia’s rental market is experiencing a severe crisis characterized by record-low vacancy rates, limited rental stock, and rising prices. Despite the overall trend, some regions are seeing an increase in rental properties available for tenants. This includes areas like West Coast (TAS), Macedon Ranges (VIC), and Katherine (NT), among others.

While some regions show improvement, the rental crisis is not abating nationwide. Most areas, including major cities and regions, continue to face significant challenges in finding rental accommodations.

The shortage of rental properties is exacerbated by a large number of investors selling properties during the property boom, high borrowing costs deterring new investors, and government policies discouraging investment in the market.

Despite the current challenges, there is a potential long-term opportunity for property investors. Low consumer confidence and subdued market activity could present favorable conditions for investors with a strategic, long-term approach.

Australia’s rental market is in crisis with vacancy rates at all-time lows, slim rental stock and skyrocketing prices.

But there are some areas bucking the trend.

New PropTrack data shows that in some regions, the availability of rental properties is actually increasing.

Could this be a sign that our rental crisis is turning a corner?

First, let’s take a look at national rental vacancy rates for today.

Rental vacancy rates are at a record low

National rental vacancy rates tell another 0.12% to just 1.07% in February, recording the lowest level of available rental properties ever.

Rental Vacancy Rates National All Dwellings

Source: PropTrack

Australia’s major capital cities suffered the largest fall in availability over the month, with a 0.14% decrease.

Meanwhile, vacancy rates in regional areas across the country also fell a smaller 0.7%.

The areas bucking the trend

Australia’s national vacancy rates are sitting at a scarily low level, but as always, not all suburbs are equal.

PropTrack’s data shows that there has been an increase of choice for renters in some areas over the past quarter.

Looking at the Australian Bureau of Statistics (ABS)’s Statistical Areas Level 3 (SA3) regions, PropTrack was able to identify the top 10 regions with the largest increase in rental supply.

Some of which have seen an uptick as high as 1%.

SA3s generally have a population of between 30,000 and 130,000 people and often closely align to large urban Local Government Areas, for example, Geelong.

And the regions listed aren’t concentrated in one area either, they’re spread across 6 different states.

The West Coast region located in regional Tasmania led the top 10 list thanks to a 1% increase in its rental vacancy rate since November 2023.

The area now has the highest vacancy rate across the country, at 4.1%, nearly 4 times the national average.

In second place is Melbourne’s Macedon Ranges where the vacancy rate is currently 2.0% having risen another 0.95% over the past quarter.

Katherine in the Northern Territory is third, with a 2.42% vacancy rate thanks to a 0.93% increase over the past quarter.

Victoria features three more times on the top 10 list making it the state with the majority of the high movers for vacancy rates.

Rental vacancies in the Mornington Peninsula rose 0.72% over the period while region VIC also saw increases.

Creswick – Daylesford – Ballan and Sheppardton saw the number of available rental properties rise 0.61% and 0.57% respectively.

Here’s the full list:

Regions with the largest quarterly growth in rental vacancy rates

Location (SA3) State City or Region Vacancy rate Quarterly change (percentage point)
West Coast TAS Rest of Tas. 4.1% 1ppt
Macedon Ranges VIC Melbourne 2.0% 0.95ppt
Katherine NT Rest of NT 2.42% 0.93ppt
Mornington Peninsula VIC Melbourne 2.07% 0.72ppt
Tumut – Tumbarumba NSW Rest of NSW 2.87% 0.7ppt
Gold Coast Hinterland QLD Rest of Qld 2.23% 0.62ppt
Creswick – Daylesford – Ballan VIC Rest of Vic. 2.37% 0.61ppt
Mid West WA Rest of WA 1.57% 0.6ppt
Shepparton VIC Rest of Vic. 1.31% 0.57ppt
Surfers Paradise QLD Rest of Qld 1.68% 0.56ppt

Source: PropTrack


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