Rental vacancy rates tighten over August

Home rental vacancy rates have generally tightened over the past month as the usual seasonal impacts recorded over August increased demand for tenancies.

The national vacancy rates for houses, units and total homes all fell marginally over August and remain well below that rates recorded over August last year.

All capitals reported declines in vacancy rates for both houses and units over August with the exception of Hobart where rates remained steady but still clearly the lowest of all the capitals.

Darwin units were also an exception to the overall trend, with vacancy rates easing to 2.7 percent over the month reflecting continued impact of recent high levels of apartment construction in that market.

The Perth market continues its steady rebalancing following the end of the stimulus from the recent mining boom with vacancy rates although still the highest of all the capitals, continue to trend downwards and are now significantly lower than last year at the same time.

Overall capital city rental markets remain undersupplied as indicated by tight vacancy rates which will continue to push upward pressure on rents.

Dr Andrew Wilson is Domain Group Chief Economist Twitter@DocAndrewWilson join on LinkedIn and Facebook at MyHousingMarket.