Vacancy rates have remained tight in July, staying at 1.9% for the second consecutive month.

New figures from SQM Research show a total of 49,466 vacancies nationally, only 1,000 more than at the same time last year. The company has indicated there was no substantial improvement in vacancies either month-on-month or year-on-year.

Melbourne has again led the other capital cities in vacancies, at 2.8%, while Canberra again had the tightest market with a vacancy rate of only 0.7%. Sydney's vacancy rate edged up slightly, rising 0.2% t0 1.6%.

SQM Research managing director Louis Christopher indicated that Australia was experiencing an oversupply of housing stock for sales, and an undersupply of properties for rent. He said this had led to rents rising at a faster rate than inflation.