Sydney renters 'losing hope' as properties are leased within minutes of listing

When Sole Ferreyra moved back to Sydney from Melbourne, she expected to pay more. The 43-year-old architect budgeted $850 a week for a one-bedroom apartment in an inner-ring suburb with a village feel, not far from her office in Surry Hills. Instead, she found Sydney rents running about 40 per cent higher than comparable Melbourne offerings, well above the 25 to 30 per cent premium she had anticipated.

The bigger shock was the pace of the market.

"The [good] properties come on the market and then they are out of the market, sometimes within minutes," she said. "It can be stressful. There was a property that was listed on one day and I organised an inspection for the next day and they called me the next morning to say it had been leased to someone else."

Domain's September quarter Rent Report shows why competition remains fierce. Vacancy rates have eased slightly to 1.2 per cent, the highest level recorded since September 2021, but the report describes the rental market as still extremely tight. The article's headline captures the mood among prospective tenants: losing hope.

Analysis

Why This Matters

Sydney renters are paying a growing premium over other capital cities, with the gap to Melbourne now running well beyond what many expect.
A vacancy rate of 1.2 per cent, while the highest in more than four years, still signals a market where tenants have very little choice.
Properties being leased within a day or two of listing means renters face intense time pressure and limited room to negotiate.

Background

Sydney has experienced a prolonged rental squeeze in recent years, with vacancy rates persistently well below the levels generally considered balanced. Demand from population growth and limited new housing supply have kept pressure on tenants, and this report shows that even a modest easing in vacancies has not yet translated into relief for people searching for a home. The experience of one applicant illustrates how competitive conditions remain.

Key Perspectives

Renters: Prospective tenants face stressful, fast-moving searches, with desirable properties leased sometimes within minutes of being advertised and inspections cancelled before they can occur. Domain's Rent Report: The data shows vacancy rates are moving in the right direction, easing to the highest level since September 2021, but the market is still extremely tight overall. Critics and Skeptics: A small rise in vacancies does not necessarily mean conditions have turned for renters. At 1.2 per cent, the vacancy rate remains very low, and the Sydney-Melbourne price gap described by renters suggests affordability pressures are still intensifying.

What to Watch

Whether the vacancy rate continues to climb in the December quarter and beyond, which would signal genuine easing.
Whether asking rents respond to the slight vacancy uptick or keep rising.
How the advertised rents for similar properties compare across Sydney and Melbourne in future Domain reports.

Analysis

Why This Matters

Background

Key Perspectives

What to Watch

Sources