Melbourne’s vacancy rates are soaring as a surge in inner-city development adds thousands of apartments to the rental market.

The city’s 3 per cent vacancy rate is now the highest among Australia’s capitals, SQM Research’s November data suggests.

At 7.8 per cent, vacancy rates in central Melbourne are the highest in Australia. Credit:Jessica Shapiro

Hobart and Adelaide have the tightest vacancy rates in Australia at 1.4 per cent, SQM figures show.

Perth’s vacancy rates, usually the lowest in the country, has risen from 0.7 per cent in November last year to 1.7 per cent this year.