The national residential rental vacancy rate fell to 1.7% in June from 1.8% in May. SQM Research says this is the lowest vacancy rate nationally since May 2011.

Vacancy rates continue to fall for Sydney, Melbourne, Adelaide and Hobart. Five of the eight capital cities have vacancies below 1%, headed by Darwin and Hobart (both 0.4%).

Melbourne’s vacancy rate fell to 3.5% in June from 3.7% in May, while in Sydney vacancy rates dropped to 2.8% from 2.9%. Vacancy rates also fell further in the Sydney CBD (5.6%) and Melbourne CBD (5.8%), representing a return towards longer-term levels.

Brisbane’s vacancy rate has dropped from 2.4% a year ago to 1.3% now, while Darwin has fallen from 1.8% to 0.4% and Perth is down from 1.5% to 0.9%.

SQM Managing Director Louis Christopher says: “Rents are now accelerating in our larger capital cities which may have ramifications for the CPI read in the coming quarters.”