Australian renters were met with some relief from the competitive market after vacancy rates eased in December, with experts saying it was a positive sign conditions could stabilise this year.
The national rate for rental vacancies rose by 0.05 per cent to 1.12 per cent in December, according to the latest report by PropTrack.
In the same time, Sydney led the major cities with the highest increase of 0.09 per cent to a 1.37 per cent vacancy rate.
Out of all capital cities, Darwin led the country with the highest vacancy rate of 2.65 per cent last month.
It was followed by Sydney with 1.37 per cent, Melbourne of 1.18 per cent and Hobart with 1.02 per cent.
Adelaide had the scarcest supply of rentals with a 0.69 per cent vacancy rate, followed by Perth with 0.73 per cent and Brisbane with 0.90 per cent.
For the year of 2023, Melbourne experienced the greatest tightening of conditions of any city after its vacancy rate dropped by 0.33 per cent.
Sydney was the only other city with overall worsening conditions after it recorded an annual 0.25 per cent drop.
PropTrack said the extremely low vacancy rates show rental supply is at “critical levels”.
“Low rental vacancy rates are indicative of tight rental markets, with tenants competing for limited stock,” the report said.
“These conditions made it difficult for many to find an available rental property and drove strong price growth throughout 2023.
“Many tenants are likely to be spending an increasing portion of their income on rent, placing pressure on household budgets.
“With the number of vacant properties remaining at low levels, tenants will continue to face challenging conditions.”
But there is a glimmer of hope for desperate renters, with real estate experts anticipating prices could start to stabilise in light of December’s easing conditions.
“However, conditions in the rental market are unlikely to deteriorate at the same pace as they did in 2022 and 2023, meaning rental prices could stabilise and increase at a slower rate than the past year,” PropTrack said.
