Australia’s Residential Vacancy Rate at a Record Low 1.00%

At Woodbridge Capital, we monitor a wide range of economic data when managing our loans and looking for new funding opportunities.

We have been keeping a close eye on the residential apartment market given rising interest rates and increased financial pressures on households causing downward pressure on prices. One of the key indicators we follow is the residential vacancy rate.

Data from SQM Research released today shows that Australia’s residential vacancy rate remains steady at 1.00%, the lowest point on record.

What are residential vacancy rates?

Vacancy rates are the percentage of residential properties (apartments and houses) that have not been rented (i.e., are vacant). They typically range from 2% - 4% by location with 3% being a ‘normal’ rate.

What does it mean?

Vacancy rates are an indicator of demand and supply. The lower the vacancy rate, the tighter the rental market and the higher demand there is for rental properties. This also generally correlates to the demand for developers to build new stock, and for investors to purchase investment properties.