Research
The latest property insights from the Domain Research House
A discounting war between landlords
A discounting war between landlords is in full swing to secure tenants amid the coronavirus pandemic.
![A discounting war between landlords](http://web.archive.org./web/20200620045447im_/https://res.akamaized.net/domain/image/upload/t_web/c_fill,w_403,h_269/v1587708958/Leased_Sign_Sydney_41_xohe1z.jpg)
Vacancy rates fall in most capital cities in May after a big rise in April
The rental vacancy rate fell in May, with the number of vacant properties decreasing in most capital cities. The decline partially offset the big rise in the vacancy rate in April. More domestic tourism has likely shift many rentals from the long-term rental market back to the short-term market.
![Vacancy rates fall in most capital cities in May after a big rise in April](http://web.archive.org./web/20200620045447im_/https://res.akamaized.net/domain/image/upload/t_web/c_fill,w_403,h_269/v1590989006/148_New_Street_Brighton3_l9aulh.jpg)
Economic recovery in the hands of governments, RBA likely to remain on sidelines
With the RBA unlikely to intervene in coming months following the big changes in March, Australia’s economic recovery is now in the hands of the federal and state governments.
![Economic recovery in the hands of governments, RBA likely to remain on sidelines](http://web.archive.org./web/20200620045447im_/https://res.akamaized.net/domain/image/upload/t_web/c_fill,w_403,h_269/v1537757390/_AMB1225_exhtif.jpg)
Melbourne's auction clearance rate rises as restrictions ease
Melbourne's clearance rate bounced by 20 percentage points from the historic low hit in April to reach 49 per cent in May; marginally below March's 50 per cent. Clearance rates remain significantly below the 69.8 per cent result in February.
![Melbourne's auction clearance rate rises as restrictions ease](http://web.archive.org./web/20200620045447im_/https://res.akamaized.net/domain/image/upload/t_web/c_fill,w_403,h_269/v1589609608/Auction_7_83-89_High_Street_Road_Ashwood_8_qcxg4v.jpg)
Sydney auction report card: May 2020
Sydney's auction clearance rate bounced by 23 percentage points from the 15-year low hit in April to reach 59 per cent in May. The result is higher than the same month the year prior by 8.7 percentage points.
![Sydney auction report card: May 2020](http://web.archive.org./web/20200620045447im_/https://res.akamaized.net/domain/image/upload/t_web/c_fill,w_403,h_269/v1590201212/DSC_3142_wo8zei.jpg)
First-home buyers try to avoid paying stamp duty – but it doesn’t make much sense
First-home buyers around Australia have been keen to take advantage of stamp duty exemptions. But it actually makes little financial sense to limit yourself to the threshold. Here's why.
![First-home buyers try to avoid paying stamp duty – but it doesn’t make much sense](http://web.archive.org./web/20200620045447im_/https://res.akamaized.net/domain/image/upload/t_web/c_fill,w_403,h_269/v1537235187/iStock-504224016_gke8ph.jpg)
No sign of distressed selling
There is little evidence to suggest an increase in urgent or distressed selling across Australia's capital cities.
![No sign of distressed selling](http://web.archive.org./web/20200620045447im_/https://res.akamaized.net/domain/image/upload/t_web/c_fill,w_403,h_269/v1587708597/For_Sale_Sign_Sydney_36_m0jspk.jpg)
Will falling rents mean lower house and unit prices?
Property prices and rents are linked – when rents are expected to be lower in the future, the current value of property also falls. But there are other factors at play.
![Will falling rents mean lower house and unit prices?](http://web.archive.org./web/20200620045447im_/https://res.akamaized.net/domain/image/upload/t_web/c_fill,w_403,h_269/v1587708216/For_Lease_Rent_Sign_Sydney_04_kwalcf.jpg)
Proportion of listings discounted eases in April following a March bounce
Amid the height of the coronavirus pandemic, more property listings across Australia had their asking prices revised downwards.
![Proportion of listings discounted eases in April following a March bounce](http://web.archive.org./web/20200620045447im_/https://res.akamaized.net/domain/image/upload/t_web/c_fill,w_403,h_269/v1587620384/For_Sale_sign_58_rnhcst.jpg)
RBA keeps rates on hold but outlook for the economy is bleak
Low interest rates and discount loans are supporting households and businesses through the recession. But it’s no certainty that there will be a smooth recovery as a second wave that would require another shutdown is still a possibility.
![RBA keeps rates on hold but outlook for the economy is bleak](http://web.archive.org./web/20200620045447im_/https://res.akamaized.net/domain/image/upload/t_web/c_fill,w_403,h_269/v1583798117/Domain_The_Age_Neighbourhoods_St_Kilda_West_Pub_Date_21_March_2020-3011_twk26k.jpg)