If you’re a landlord, a renter, or you’re thinking of investing in residential property, knowingthe vacancy rates in your city can be an invaluable asset. So which cities are in highestdemand, and where do renters have the upper hand?
Across the country, 2.2% of all available rental properties were untenanted in May 2017,according to data from SQM Research. In Sydney and Melbourne, sky-high house prices have helped push rents up, and demand remains strongas first home buyers are forced torent long -term while they struggle to save that elusive deposit. By contrast, the decline of themining boom has seen vacancies soar across Perth.
Here’s a snapshot of rental vacancy trends to give you an idea of which are the best cities for renters:
In Melbourne, the median rent in May 2017 was $420, and vacancies sat at 2.2%, a slightdrop of just 0.1% from the previous month. The CBD area recently recorded its lowestvacancy rate in almost 10 years, with just 1.7% of properties untenanted. This is despitespeculation that apartment over -supply would lead to a cooling in the rental market. InHawthorn in the inner east, a three-bedroom home will set you back around $700 per weekin rent. Meanwhile the same h ome in the western suburb of Sunshine rents for just $345 perweek. However, Sunshine has a vacancy rate of 2.2%, compared to Hawthorn’s 1.3% percent– this is most likely owing to Hawthorn’s proximity to the CBD and leading universities, makingit popular with students and young professionals.
In beachside Manly, a two – bed dwelling could cost as much as $960 per week to rent, andthe 2.6% vacancy rate is higher than the Sydney average of 1.8%. Yet in Mount Druitt inSydney’s West, landlords can expect to charge just $350 per week for a two-bedroom home. While rents here are low compared to the Sydney median, a vacancy rate of just 1.2%means your property is unlikely to be empty for long between tenants.
Prospective tenants looking to rentin upmarket Ascot can expect to pay up to $1000 perweek for a four – bedroom home. However, with a vacancy rate of 8.7%, the suburb is not so sought after with investors. If youhead south to Logan Central, you can snap up a four-bedroom family home for under $400per week, with vacancies sitting at just 2.2%.
The rental market in Hobart is thestrongest in the country, with just 0.6% of properties vacantin May this year. Median weekly rents for three-bedroom homes in Hobart hover around the$360 per week mark, providing healthy yields and making the city an attractive option forboth local and interstate investors. A four – bed property in Sandy Bay, close to Tasmania’sworld – class university, can command upwards of $600 per week– and with just 0.5% of properties vacant, it seems students and families can’t resist.
The rental market in Adelaide is holding steady, with 1.9% of homes across the City ofChurches vacant in January this year. Leafy Malvern in Adelaide’s inner south, where themedian rent is $495 per week, recorded a vacancy rate of 2.7% in May 2017. To the north inElizabeth, median rents sit at just $268 per week, with amere 0.9% of properties vacant.
The Perth metro area has the highest vacancy rate of the major capitals, with 4.7% of rentalsacross the city sitting unoccupied. In riverside Mount Pleasant, $330 a week is the average rent for a two -bed home, and there shouldn’t be too much competition with otherprospective tenants as 4.8% of properties are currently vacant. Meanwhile in Midland,vacancies remain around 5.4% despite affordable rents to the tune of $280for 2 bedroom dwellings.