Key takeaways
National combined rents declined modestly to $645.44, while annual gains remained steady at 3.3%.
Australia’s rental market posted a slight uplift in vacancy rates in June 2025, rising nationally from 1.2% to 1.3%.
Australia’s rental market continues to display nuanced dynamics, with capital cities diverging in performance over the past week.
According to SQM Research’s Weekly Rents Index, national combined rents declined modestly to $645.44, while annual gains held firm at 3.3%.
The standout performer was Darwin, where combined rents jumped over 1.0% week-on-week and soared nearly 14% year-on-year, highlighting pressure in smaller housing markets.
City-Specific Insights
Sydney
- Combined rent: $852.19 (↓ $0.75)
- Rolling month: -0.3%; annual: +1.8%
- Market softening slightly amid seasonal turnover; unit rents up, houses
Melbourne
- Combined rent: $654.27 (↓ $0.17)
- Rolling month: +0.6%; annual: +2.8%
- Houses remain resilient, overall growth
Brisbane
- Combined rent: $689.01 (↓ $0.49)
- Rolling month: +0.7%; annual: +3.8%
- Units and houses gaining traction; solid growth
Perth
- Combined rent: $758.63 (↑ $2.36)
- Rolling month: +0.1%; annual: +5.7%
- Houses surged $5.44; competition intensifies in outer metro
Adelaide
- Combined rent: $622.82 (↓ $0.03)
- Rolling month: +1.7%; annual: +4.5%
- Units driving momentum; affordability keeping demand
Canberra
- Combined rent: $676.29 (↑ $1.15)
- Rolling month: +0.1%; annual: +3.6%
- Unit rents rebound, balancing softer house
Darwin
- Combined rent: $639.77 (↑ $7.02)
- Rolling month: +1.0%; annual: +13.9%
- Houses rose over $21; lowest vacancy rate nationally fueling sharp
Hobart
- Combined rent: $542.69 (↓ $1.24)
- Rolling month: -0.5%; annual: +6.5%
- Units climbing while houses cool; winter lull
Sydney
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $1,071.28 | -2.28 | -0.3% | 3.0% |
| All Units | $702.71 | 0.29 | -0.4% | 0.6% |
| Combined | $852.19 | -0.75 | -0.3% | 1.8% |
Source: SQM Research
Melbourne
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $764.74 | 0.26 | 0.6% | 2.7% |
| All Units | $575.48 | -0.48 | 0.5% | 2.7% |
| Combined | $654.27 | -0.17 | 0.6% | 2.8% |
Source: SQM Research
Brisbane
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $761.22 | -0.22 | 1.0% | 3.4% |
| All Units | $600.83 | -0.83 | 0.3% | 4.4% |
| Combined | $689.01 | -0.49 | 0.7% | 3.8% |
Source: SQM Research
Perth
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $830.56 | 5.44 | -0.1% | 5.7% |
| All Units | $656.99 | -1.99 | 0.3% | 5.4% |
| Combined | $758.63 | 2.36 | 0.1% | 5.7% |
Source: SQM Research
Adelaide
| Property Type | Rent $) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $671.80 | -0.80 | 2.3% | 3.2% |
| All Units | $527.52 | 1.48 | 0.4% | 7.3% |
| Combined | $622.82 | -0.03 | 1.7% | 4.5% |
Source: SQM Research
Canberra
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $782.49 | -4.49 | -0.3% | 2.5% |
| All Units | $588.17 | 5.83 | 0.6% | 5.2% |
| Combined | $676.29 | 1.15 | 0.1% | 3.6% |
Source: SQM Research
Darwin
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $771.46 | 21.54 | 2.8% | 12.4% |
| All Units | $548.99 | -2.99 | -0.7% | 15.2% |
| Combined | $639.77 | 7.02 | 1.0% | 13.9% |
Source: SQM Research
Hobart
| Property Type | Rent 9$) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $571.45 | -2.45 | -1.2% | 6.6% |
| All Units | $499.43 | 0.57 | 0.7% | 6.2% |
| Combined | $542.69 | -1.24 | -0.5% | 6.5% |
Source: SQM Research
National
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $715.00 | -9.00 | -1.0% | 2.9% |
| All Units | $565.00 | 3.00 | 0.0% | 3.9% |
| Combined | $645.44 | -3.44 | -0.6% | 3.3% |
Source: SQM Research
Cap City Average
| Property Type | Rent ($) | Weekly change | Monthly change | 12 Months change |
|---|---|---|---|---|
| All Houses | $863.00 | 0.00 | 0.3% | 3.7% |
| All Units | $640.00 | 0.00 | -0.2% | 2.6% |
| Combined | $744.40 | 0.00 | 0.1% | 3.2% |
Source: SQM Research
Vacancy Rates - June 2025
| City | Jun 2024 Vacancies | Jun 2024 Vacancy Rate | May 2025 Vacancies | May 2025 Vacancy Rate | Jun 2025 Vacancies | Jun 2025 Vacancy Rate |
|---|---|---|---|---|---|---|
| Sydney | 12,143 | 1.7% | 10,808 | 1.5% | 11,482 | 1.6% |
| Melbourne | 7,864 | 1.5% | 9,074 | 1.7% | 9,414 | 1.8% |
| Brisbane | 3,962 | 1.1% | 3,064 | 0.9% | 3,147 | 0.9% |
| Perth | 1,510 | 0.8% | 1,416 | 0.7% | 1,457 | 0.8% |
| Adelaide | 1,180 | 0.7% | 1,240 | 0.8% | 1,268 | 0.8% |
| Canberra | 1,265 | 2.1% | 891 | 1.5% | 920 | 1.5% |
| Darwin | 223 | 0.9% | 129 | 0.5% | 115 | 0.5% |
| Hobart | 425 | 1.5% | 177 | 0.6% | 175 | 0.6% |
| National | 40,486 | 1.3% | 37,879 | 1.2% | 39,027 | 1.3% |
Source: SQM Research
According to SQM Research, Australia’s rental market posted a slight uplift in vacancy rates in June 2025, rising nationally from 1.2% to 1.3%.
While the monthly increase may suggest early signs of stabilisation, many capital cities continue to grapple with persistent undersupply, keeping rental conditions firmly in favour of landlords.
Key Vacancy Rate Findings:
Despite small monthly rises, vacancy rates across most capitals continue to signal demand-driven pressure.
Landlords in tighter markets may retain pricing power, while renters in cities like Melbourne and Canberra could see gradual shifts toward balance.
- Sydney: 5%, up 0.1% year-on-year, stable since April 2025.
- Melbourne’s vacancy rate continues to climb, reaching 1.8% — indicative of easing demand or new supply entering the market.
- Sydney’s modest uplift to 6% hints at seasonal fluctuations rather than a market shift.
- Brisbane, Perth, Adelaide, Darwin and Hobart all maintain sub-1% rates, reinforcing ongoing pressure on tenants.
- Canberra has stabilised after a sharp year-on-year decline, possibly reflecting renewed leasing activity or moderate supply increases.
Commentary
The marginal increase in vacancies nationally should not be interpreted as a market turnaround.
Most regions still show signs of stress, and the recent spike in dwelling approvals needs to translate into physical supply before rental conditions meaningfully improve.
June's figures suggest the beginning of a seasonal rebalancing in some regions.
However, we are far from a renter’s market, especially in cities like Darwin and Hobart where vacancy rates are critically low.
