Lower Vacancy Rates are Good News for Brisbane Landlords

The rental vacancy rate is an important indicator for the bargaining power for both renters and landlords. A high or increasing vacancy rate means tenants hold a more powerful position in the market. While a falling vacancy rate indicates that landlords have the upper hand.

It appears that landlords are in a stronger position in Brisbane than the major capital cities as vacancy rates have trended down. According to Domain, in January 2019, the rental vacancy rates of Brisbane was 2.6%, down from 3.1% in the same month of the previous year. While in Sydney and Melbourne, the vacancy rate has been trending higher.

While domain’s data does say that the vacancy rate did lower in these two capital cities in January, December usually sees a seasonal increase in listings. Both cities have seen an overall upward trend of vacancies over the year resulting in more options for renters.

When renters have more options, they are more able to shop around and be more picky in their final decision. They’ll also be able to find rentals at a lower cost than if the vacancy rate were lower. This was seen in Domain’s Rental Report, where Sydney’s median asking rent price for houses fell from $550 per week to $540 per week in the year to December.

On the flip side, the tightening of a rental market could foreshadow rent increases in the area. This has been seen as Brisbane’s weekly rents of houses have risen 2.5% in the year to December; along with the weekly rents of units which have risen 2.7% over the same period. This is as Queensland’s capital city’s supply of available rentals tighten and the vacancy rates trend downwards.