Key takeaways
Nationally, combined rents average $649.18, with a 0.1% monthly decline but a 4.2% annual increase, highlighting varied conditions across states, according to the latest data from SQM Research.
The national vacancy rate held steady at 1.2% in May 2025, after 1.3% in April 2025, marking a slight monthly decline.
Nationally, combined rents average $649.18, with a 0.1% monthly decline but a 4.2% annual increase, highlighting varied conditions across states, according to the latest data from SQM Research.
The latest SQM Research Weekly Rents Index shows mixed shifts across Australia’s capital cities, with rents adjusting in response to supply and demand dynamics.
City-Specific Insights:
- Sydney: Advertised weekly rents are $854.69, reflecting a 2% decline over the past month but a 1.7% increase compared to last year. The 1.5% vacancy rate suggests rental conditions remain steady, tempering rent growth.
- Melbourne: Rents sit at $651.62, up 5% over the past month and 2.4% over the year. The 1.7% vacancy rate indicates ongoing market fluctuations.
- Brisbane: Weekly rents average $684.41, with a 2% monthly decline but a 3.8% annual rise, as vacancy rates tighten to 0.9%.
- Perth: Advertised rents stand at $756.93, increasing 4% monthly and 6.2% annually, reflecting steady demand amid 0.7% vacancy rates.
- Adelaide: Rents are $611.21, declining 3% over the month but up 3.1% year-on-year, with vacancy rates holding at 0.8%.
- Canberra: Weekly rents average $675.82, down 3% monthly but up 4.2% annually, with vacancy rates easing to 1.5%, supporting rental availability.
- Darwin: Rents are $633.37, up 7% over the past month and 13.1% year-on-year, with vacancy rates dropping to 0.5%, reflecting tightening supply.
- Hobart: Advertised rents reach $543.69, growing 6% monthly and 7.6% annually, as the 0.6% vacancy rate underscores ongoing market constraints.
Sydney
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $1,074.18 | -1.18 | 0.6% | 2.7% |
| All Units | $704.91 | -0.91 | -0.9% | 0.8% |
| Combined | $854.69 | -1.02 | -0.2% | 1.7% |
Source: SQM Research
Melbourne
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $759.06 | 2.94 | -0.6% | 1.9% |
| All Units | $575.11 | 2.89 | 1.6% | 2.7% |
| Combined | $651.62 | 2.91 | 0.5% | 2.4% |
Source: SQM Research
Brisbane
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $753.47 | -0.47 | -0.8% | 4.3% |
| All Units | $600.07 | 1.93 | 0.7% | 3.1% |
| Combined | $684.41 | 0.61 | -0.2% | 3.8% |
Source: SQM Research
Perth
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $828.77 | -4.77 | 0.1% | 5.1% |
| All Units | $655.52 | 0.48 | 1.1% | 8.1% |
| Combined | $756.93 | -2.59 | 0.4% | 6.2% |
Source: SQM Research
Adelaide
| Property Type | Rent $) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $657.08 | -3.08 | -1.1% | 1.5% |
| All Units | $522.04 | 4.96 | 1.6% | 7.0% |
| Combined | $611.21 | -0.35 | -0.3% | 3.1% |
Source: SQM Research
Canberra
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $785.56 | -9.56 | -4.0% | 4.7% |
| All Units | $584.66 | -0.66 | -0.3% | 3.9% |
| Combined | $675.82 | -4.70 | -2.3% | 4.2% |
Source: SQM Research
Darwin
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $750.40 | 19.60 | 0.1% | 8.6% |
| All Units | $552.79 | 10.21 | 5.2% | 17.5% |
| Combined | $633.37 | 14.04 | 2.7% | 13.1% |
Source: SQM Research
Hobart
| Property Type | Rent 9$) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $569.68 | 0.32 | 2.5% | 6.9% |
| All Units | $504.67 | 19.33 | 5.6% | 8.7% |
| Combined | $543.69 | 7.92 | 3.6% | 7.6% |
Source: SQM Research
National
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $722.00 | 0.00 | 0.1% | 4.3% |
| All Units | $565.00 | 0.00 | -0.4% | 4.1% |
| Combined | $649.18 | 0.00 | -0.1% | 4.2% |
Source: SQM Research
Cap City Average
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $859.00 | 1.00 | -0.5% | 3.1% |
| All Units | $642.00 | 2.00 | 0.6% | 3.2% |
| Combined | $743.58 | 1.53 | 0.0% | 3.2% |
Source: SQM Research
Vacancy Rates - May 2025
| City | May 2024 Vacancies | May 2024 Vacancy Rate | Apr 2025 Vacancies | Apr 2025 Vacancy Rate | May 2025 Vacancies | May 2025 Vacancy Rate |
|---|---|---|---|---|---|---|
| Sydney | 10,309 | 1.4% | 10,784 | 1.5% | 10,808 | 1.5% |
| Melbourne | 6,746 | 1.3% | 9,379 | 1.8% | 9,074 | 1.7% |
| Brisbane | 3,620 | 1.0% | 3,435 | 1.0% | 3,064 | 0.9% |
| Perth | 1,233 | 0.6% | 1,425 | 0.7% | 1,416 | 0.7% |
| Adelaide | 986 | 0.6% | 1,233 | 0.8% | 1,240 | 0.8% |
| Canberra | 1,098 | 1.8% | 949 | 1.6% | 891 | 1.5% |
| Darwin | 244 | 0.9% | 189 | 0.7% | 129 | 0.5% |
| Hobart | 377 | 1.4% | 180 | 0.6% | 177 | 0.6% |
| National | 35,641 | 1.2% | 39,378 | 1.3% | 37,879 | 1.2% |
Source: SQM Research
According to SQM Research, Australia’s rental market has shown dynamic shifts over the past year, with vacancy rates stabilising across most capital cities while reflecting notable changes compared to May 2024.
The national vacancy rate held steady at 1.2% in May 2025, after 1.3% in April 2025, marking a slight monthly decline.
Key Vacancy Rate Findings:
Based on SQM Research’s monitoring of unique online rental listings, the total number of vacant residential properties nationwide rose to 37,879 in May 2025, from 35,641 in May 2024.
- Sydney: 5%, up 0.1% year-on-year, stable since April 2025.
- Melbourne: 7%, up 0.4% from May 2024, slightly lower than April’s 1.8%.
- Brisbane: 9%, down 0.1% compared to last year and 0.1 % from April, indicating tightening availability.
- Perth: 7%, up 0.1% year-on-year, unchanged since April 2025.
- Adelaide: 8%, up 0.2% from May 2024, stable month-on-month.
- Canberra: 5%, down 0.3% year-on-year and 0.1 % month-on-month, pointing to a gradual decline in rental vacancies.
- Darwin: 5%, down 0.4% from last year and 0.2 % from April, reflecting a tightening market.
- Hobart: 6%, down 0.8% from May 2024, stable since April 2025.
Commentary
Overall rental vacancies remained steady from April to May.
Rental growth also remained steady but continued to be elevated, given the ongoing shortage in the rental market.
We are likely to have ongoing elevated rents for a long period of time, until we have an equilibrium between tenancy demand and rental supply.
That’s not likely to happen until such time as we slow down in population rate and a meaningful increase in new dwelling completions.
