Regional South Australia held the highest rental vacancy rate of all regional areas in October, according to the latest PropTrack Market Insight Report released.
The report found that regional South Australia was the only regional area where renters had greater choice of available rentals than a year ago, as the vacancy rate grew 0.62ppt year-on-year to sit at 1.86% in October.
It showed that in regional South Australia, rental vacancy grew by 0.31ppt over the month to 1.86% in October – the highest rate of rental vacancy among regional markets.
Regional South Australia was the only regional market to record a rise in rental vacancy over the quarter (+0.28ppt) and year (+0.62ppt) and saw the highest annual growth in rental vacancy of any market across the country.
Adelaide’s rental vacancy rate increased by 0.07ppt over the month to sit at 1.13% in October.
Rental vacancy rose over the quarter (+0.05ppt) and year (+0.22ppt) in Adelaide.
The share of rental properties vacant and available has dropped since the onset of the pandemic in March 2020, down 23% in Adelaide and 41% in regional South Australia.
REA Group Senior Economist Anne Flaherty said rental conditions improved in all capital cities and regional markets over October, with the national vacancy rate now 0.21ppt higher than at the same time last year.
“Despite the improvement, rental supply remains well below pre-pandemic levels, with 35% fewer properties available for rent,” she said.
“While rental supply improved across both capital city and regional markets in October, there has been greater relief for renters in cities. Over the past year, vacancy rates in capital cities rose by 0.33ppt, while the combined regional areas remain 0.13ppt lower than a year ago.
“Compared to March 2020, there were 45% fewer properties available for rent in Australia’s regional areas compared to a 32% drop in the capital cities.”
The report also found the national rental vacancy rate jumped 0.19%age points (ppt) in October to reach 1.36% – the highest level recorded since July 2023.
Sydney recorded the second largest jump in vacancy over the month (rising 0.31ppt to 1.57%) behind only Darwin (rising 0.41ppt to 1.39%).
Melbourne and Brisbane also saw substantial rises in vacancies, up 0.18ppt and 0.19ppt, respectively.
Vacancy remains tight in Adelaide, at 1.13%, however, it has improved from levels seen 12 months ago.
Surging investor activity in Perth has contributed to a rise in the number of rental properties. Even so, vacancy remains incredibly low at just 0.97%.
Hobart remains the city with the lowest vacancy rate in the country, with just 0.82% of rental properties sitting vacant in October.
