Invest
Rents pushed up as vacancy rates drop
The number of vacant properties in Australia dropped in August, pushing up rental prices in most cities, new research has shown.
Rents pushed up as vacancy rates drop
The number of vacant properties in Australia dropped in August, pushing up rental prices in most cities, new research has shown.
Figures released by investment research house SQM Research revealed that the number of national residential vacancies dropped from 79,300 in July to 73,451 in August, bringing the country’s vacancy rate to 2.3 per cent.
Vacancies dropped in all capital cities in August, pushing up rents in most locations in September, especially in Sydney and Melbourne where vacancy rates were below 2 per cent (1.7 per cent and 1.9 per cent, respectively) last month.
The average weekly rent for a three-bedroom house in Sydney for the week ending 20 September was $712.9, up 0.5 per cent on the previous month and 4.8 per cent more than same time last year.
Rental prices for houses in Melbourne rose by 3.4 per cent to $485.50 a week over the year to 20 September, and rent for units rose by 4.5 per cent to $380.20.
In contrast, Perth recorded the highest vacancy rate of 5.0 per cent in August (though it fell by 0.2 percentage points from a record high of 5.2 per cent in July), with rent for houses falling by 9.6 per cent on last year to $434.6 per week and dropping by 11.4 per cent for units to $346.1.
Hobart continued to record the most affordable rental accommodation, with rents for houses at just $343 a week and units averaging $279 a week. Vacancy rates in the Tasmanian capital only dropped marginally, from 3.1 per cent in July to 3.0 per cent in August.
There were some exceptions to the rule, however, with Canberra’s vacancy rate dropping from 1.3 per cent in July to 1.1 per cent in August, but rents increasing by 12.1 per cent for houses and 9.6 per cent for units (based on information for the 12-month change to the week ending 20 September).
Nationally, rents rose by 2.2 per cent on last year for houses and 1.5 per cent for units.
“Vacancy rates have edged down in all capital cities. Reflecting that, asking rents have jumped in some cities, including Sydney,” SQM Research managing director Louis Christopher said.
“Perth continues to be the ongoing exception with asking rents still falling as the mining downturn weighs on prices, despite a slightly lower vacancy rate.”
Touching on fears of an apartment oversupply in Melbourne, Mr Christopher said, “If true, [it] cannot come soon enough as at present having a vacancy rate trending down below 2 per cent is highly suggestive that landlords are in control of the market.”
“Sydney is likely to remain a landlord's market as the city’s growing population creates demand for new stock. The only area right now where we are recording sustained increases in vacancies is the Hills district.”
RELATED ARTICLES
Property
Twice the demand: the case study behind Melbourne’s first‑home buyer surge
Melbourne has quietly engineered one of Australia’s most consequential housing turnarounds, with first‑home buyer demand running at roughly double the national pace and four of the top five buyer ...Read more
Property
First‑home buyers now anchor Australia’s mortgage growth — but the risk maths is changing
Great Southern Bank’s revelation that nearly one in three of its new mortgages went to first‑home buyers is not an outlier. It is the leading edge of a broader market realignment powered by government ...Read more
Property
Home guarantee scheme shake-up challenges Australia’s housing market players
From 1 October 2025, the expanded Home Guarantee Scheme (HGS) materially widens what first-home buyers can purchase and where. By sharply lifting price caps and relaxing eligibility settings, the ...Read more
Property
GSB’s first‑home buyer play: turning policy tailwinds into market share
Great Southern Bank’s latest results show that nearly one in three of its new mortgages now go to first‑home buyers—evidence of a fast‑moving market reshaped by government guarantees, easing rates and ...Read more
Property
Why investors are fleeing and renters are scrambling in Australia's housing maze
Australia’s rental market is tightening even as individual landlords sell down. New data points to a multi‑year investor retreat tied to higher holding costs and regulatory uncertainty, while prices ...Read more
Property
Australia's 5% deposit guarantee: Unlocking gains while balancing risks in the market share race
Can a bigger government guarantee fix housing access without fuelling prices? Australia is about to find out. The Albanese government’s expanded 5% deposit pathway aims to help 70,000 buyers, remove ...Read more
Property
Australia's bold move the 5% deposit scheme shaking up the housing market
Can a government guarantee replace lenders mortgage insurance without inflating prices or risk? Canberra’s accelerated 5% deposit scheme is a bold demand-side nudge in a supply‑constrained marketRead more
Property
When rates drop but stress sticks: exploring Australia's mortgage arrears dilemma
Headline numbers suggest arrears ease as rates come down. The reality in Australia is messier: broad measures dipped into mid‑2025, yet severe delinquencies and non‑bank portfolios remain under ...Read more
Property
Twice the demand: the case study behind Melbourne’s first‑home buyer surge
Melbourne has quietly engineered one of Australia’s most consequential housing turnarounds, with first‑home buyer demand running at roughly double the national pace and four of the top five buyer ...Read more
Property
First‑home buyers now anchor Australia’s mortgage growth — but the risk maths is changing
Great Southern Bank’s revelation that nearly one in three of its new mortgages went to first‑home buyers is not an outlier. It is the leading edge of a broader market realignment powered by government ...Read more
Property
Home guarantee scheme shake-up challenges Australia’s housing market players
From 1 October 2025, the expanded Home Guarantee Scheme (HGS) materially widens what first-home buyers can purchase and where. By sharply lifting price caps and relaxing eligibility settings, the ...Read more
Property
GSB’s first‑home buyer play: turning policy tailwinds into market share
Great Southern Bank’s latest results show that nearly one in three of its new mortgages now go to first‑home buyers—evidence of a fast‑moving market reshaped by government guarantees, easing rates and ...Read more
Property
Why investors are fleeing and renters are scrambling in Australia's housing maze
Australia’s rental market is tightening even as individual landlords sell down. New data points to a multi‑year investor retreat tied to higher holding costs and regulatory uncertainty, while prices ...Read more
Property
Australia's 5% deposit guarantee: Unlocking gains while balancing risks in the market share race
Can a bigger government guarantee fix housing access without fuelling prices? Australia is about to find out. The Albanese government’s expanded 5% deposit pathway aims to help 70,000 buyers, remove ...Read more
Property
Australia's bold move the 5% deposit scheme shaking up the housing market
Can a government guarantee replace lenders mortgage insurance without inflating prices or risk? Canberra’s accelerated 5% deposit scheme is a bold demand-side nudge in a supply‑constrained marketRead more
Property
When rates drop but stress sticks: exploring Australia's mortgage arrears dilemma
Headline numbers suggest arrears ease as rates come down. The reality in Australia is messier: broad measures dipped into mid‑2025, yet severe delinquencies and non‑bank portfolios remain under ...Read more
