Amid a housing crisis, one Australian city has a vacancy rate of 3.7 per cent — 3700 vacant homes for every 100,000 people.
Well, in theory at least. But all is not as it seems.
Darwin Waterfront in the Northern Territory has the highest number of empty residential properties in the country, according to an analysis of data from the Australian Bureau of Statistics (ABS) undertaken by Top Removals.
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Brisbane has the lowest number of empty homes at just two per 100,000 people.
“It’s surprising to see Darwin Waterfront Precinct ranking as the place with the highest number of empty residential properties in Australia, given that many other regional and rural cities rank among the top ten (for lack of vacancies),” Top Removals general manager Idan Peretz said.
Top Removals suggested this could be due to seasonal tourism, as many properties may be used as holiday homes.
“Meanwhile, Sydney, Australia’s most populated city ranks in seventh position with the lowest number of vacant residential properties, with the likes of Brisbane and Melbourne outranking it,” Peretz said.
“This shows that cities, at a varying range of economic and social status, are not immune to patterns of residential housing supply.”
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It comes after Master Builders Australia warned low apprenticeship numbers may worsen the housing crisis, following new ABS data revealing the last financial year was the worst year for new home builds in a decade.
The rate of new builds dropped by 8.8 per cent to 158,690 new starts.
“Detached house starts fell by 10.1 per cent, while higher density commencements were down by 6 per cent,” Master Builders chief economist Shane Garrett said.
“If building continues at this pace, we’ll be in for less than 800,000 new home starts over the next five years.”
“This would mean a shortfall of over 400,000 homes compared with the National Housing Accord target.”
At the same time, new data from the National Centre for Vocational Education Research revealed a decline in apprenticeship numbers.
Apprenticeship completions fell by 8.6 per cent and commencements dropped by 11.8 per cent, while the number of apprentices in training declined by 2.2 per cent.
The new data paints a concerning picture for Australia’s housing crisis, Master Builders Australia CEO Denita Wawn said.
“Today’s data releases aren’t unrelated,” she said.
“To bring Australia out of the housing crisis we need to drastically increase the supply of housing, and we can’t do that while we’re simultaneously suffering through a labour shortage.
“We urgently need governments to look at solutions to increase the number of tradies, increase the number of apprentices, and help Australian builders increase supply so we can come out the other side of this housing crisis.”
Australian cities with the highest vacancy rates
The majority of localities with high vacancy rates are remote, with Queensland and Western Australia including the most areas.
- Darwin Waterfront Precinct — this Northern Territory locale tops the list with a 3.7 per cent vacancy rate, which may in part be due to holiday homes but could also be due to economic shifts, high prices and urban development.
- Yarrabah — this remote Indigenous community on the Far North Queensland coast has a 3 per cent vacancy rate, which analysts attribute to its remote location, socio-economic challenges and housing mobility.
- Palm Island — this group of 16 islands off the Far North Queensland coast has a 2.9 per cent vacancy rate which could be due to its remote location, limited job opportunities, and historical housing issues may contribute to unoccupied homes.
- Peppermint Grove — this wealthy suburb in Perth has a vacancy rate of 2.8 per cent, which analysts attribute to investment properties, slow sales, or homes left empty during renovations or redevelopment.
- Hope Vale — this Aboriginal Shire and coastal locality in Far North Queensland has a vacancy rate of 2 per cent, which could be due to residents leaving the remote location for work or education as well as the impact of housing maintenance issues and socio-economic challenges.
- Roxby Downs — this South Australian mining town has a vacancy rate of 1.9 per cent, likely due to its population of largely short-term residents.
- Diamantina — this remote Queensland region, bordering both SA and the NT, has a vacancy rate of 1.4 per cent. Analysts theorise this could be due to its sparse population, isolation, and reliance on pastoral activities leading to seasonal vacancies.
- Wiluna — this mining town in Western Australia’s Goldfields-Esperance region has a vacancy rate of 1.35 per cent, which may be due to workforce fluctuations and its isolated location.
- Cue — this West Australian mining town has a vacancy rate of 1.1 per cent, which may be due to population decline and reduced mining activity as well as its remote location.
- Wyalkatchem — this West Australian town in the Wheatbelt region has a 1 per cent vacancy rate, which could be due to changes in the agricultural industry meaning fewer employees are required, as well as the remote location.
Australian cities with the lowest vacancy rates
Australia’s largest cities are also the cities filling out the list of lowest vacancy rates across the country, with other lifestyle hubs in NSW, Queensland and Victoria also making the list.
- Brisbane — Queensland’s capital has a vacancy rate of 0.002 per cent, or just two vacant properties per 100,000 people. Analysts theorise this could be due to interstate migration when housing was more affordable in comparison to other areas. Limited housing supply and high rental demand also keep vacancies low.
- Gold Coast — this Queensland city has a vacancy rate just slightly higher than Brisbane’s, coming in at 0.0024 per cent. Its appeal as both a lifestyle and tourism destination could be behind this, as well as its appeal to retirees, remote workers and those looking to buy a holiday home.
- Melbourne — Victoria’s capital has a vacancy rate of 0.0031 per cent, or 3.1 vacant properties per 100,000 people. Analysts theorise that population growth and more affordable housing than other cities such as Sydney and Canberra may contribute to this.
- Mornington Peninsula — this Victorian lifestyle and holiday home destination has a vacancy rate of 0.0032 per cent, most likely due to the former factors and the appeal for remote workers.
- Sunshine Coast — this Queensland region has a vacancy rate of 0.0043 per cent, likely due to its appeal as a coastal lifestyle hub alongside its appeal to tourists.
- Central Coast — this NSW region has a vacancy rate of 0.0048 per cent, which could be impacted by its proximity to Sydney and lifestyle appeal as well as the high demand for holiday rentals.
- Australian Capital Territory — the entire ACT has a vacancy rate of 0.0048 per cent, or 4.8 vacant homes per 100,000 people. Analysts suggest this could be due to stable government jobs and population growth, along with local policies like the Vacant Residential Land Tax.
- Sydney — NSW’s capital has a vacancy rate of 0.0052 per cent, or 5.2 vacant homes per 100,000 people. High property prices, a strong job market and lifestyle appeal may contribute to this.
- Moreton Bay — this region, located just outside Queensland’s capital, has a vacancy rate of 0.0048 per cent. Its proximity to Brisbane and comparatively low house prices may contribute to this.
- Shoalhaven — this coastal town on NSW’s south coast has a vacancy rate of 0.0061 per cent, which may be due to its popularity as a coastal and rural lifestyle destination, proximity to Sydney and Canberra, and tourism appeal.