The number of properties for rent dropped 4.5% to a record low in the past four weeks, according to new data from SQM Research.

Nationally there are now only 55,124 properties available for rent.

Sydney recorded the biggest drop in listings of 5.7% to 16,142 – the lowest level in five years, while Melbourne listings fell by 3.6% to 14,666 which is a three-year low.

SQM Managing director Louis Christopher says the shrinking pool of available properties coupled with increasing demand from returning international students has led to a sharp drop in vacancy rates in CBD markets.

CBD vacancy rates soared during Covid, but Sydney’s is now 3.4%, Melbourne 2% and Brisbane 2.2%.

“With the falls in CBD rental vacancy rates to well below average, we have evidence that the rise in overseas arrivals is starting to put some additional demand pressure in certain pockets of the rental market,” Christopher says.

“We will wait to see if the increased immigration demand creates pressure elsewhere.”