- Australia’s rental market (Source: Emily Rayner)
Australia’s rental market is experiencing record-low vacancy rates and rapidly increasing rents, with a 4.3% annual increase and a 1.4% quarterly surge. Sydney has the most challenging rental market, with median weekly rents at $807, while the national capital city average has breached $700 per week. Limited rental supply, particularly in the unit sector, is driving rent increases, with listings tracking approximately 25% below the five-year average. Rising rents may contribute to higher inflation and potentially keep interest rates elevated, impacting both renters and homeowners. Renters are experiencing significant financial strain, with wages not keeping pace with rent increases, leading to housing stress and lifestyle adjustments.
- Housing approvals (Source: Vivien Topalovic)
Housing approvals in Australia declined by 6% in August, with apartment approvals falling 33.4% and representing one of the lowest levels in a year. Industry leaders are calling for policy changes and government intervention to address the housing crisis and meet the National Housing Accord target of 1.2 million new homes by mid-2029. Experts suggest increasing higher-density housing like apartments and townhouses to improve housing affordability and meet demand. States are introducing various policies to streamline construction, including NSW’s Pre-Sale Finance Guarantee program and Victoria’s planning changes. Challenges facing the housing construction industry include high construction costs, labor shortages, complex approval processes, and investment-deterring taxes.
- National Vacancy Rate (Source: SQM Research)
As of September 2025, Australia’s national vacancy rate remained steady at 1.2%, reflecting tight rental conditions across most capitals. Brisbane (0.9%), Hobart (0.4%), and Perth (0.7%) continue to experience very low vacancies, while Sydney eased slightly to 1.3% and Melbourne held at 1.8%. Advertised rents rose nationally by 0.8% month-on-month and 4.8% year-on-year, with the combined capital city average now $756.28 per week. House rents remain the main driver of growth, while some cities, including Darwin and Canberra, saw modest monthly declines. The data indicates a persistently undersupplied rental market.
- Rent growth (Source: Craig Francis)
Australian rental prices have stabilized after years of significant increases, with five capital cities showing zero percent change in median house rents. Vacancy rates have hit a record low of 1.47%, significantly below the pre-Covid decade average of 3.3%. Sydney remains the most expensive rental market, with median rents at $807 per week, representing 33.7% of average household income. Regional rental growth continues to outpace capital city rental growth, with national rent values rising 0.8% in the September quarter. Rental supply remains tight, with listings tracking approximately 25% below the previous five-year average nationally. The expanded federal Home Guarantee Scheme might potentially reduce rental demand by helping more renters transition to home ownership.
- Australian property market (Source: Emilie Lauer)
Australian property market sees significant investor activity, reaching an eight-year high due to low interest rates and tight rental supply. Investor lending has risen across most states, with Queensland and South Australia recording the highest increases, while rental market conditions remain very tight. Over 90% of investment properties sold in the past year made a profit, driven by strong price growth during and after the pandemic. Market experts predict continued strong investor activity due to expected interest rate cuts and challenging rental market conditions.
- CoreLogic Auction Results (Week ending 12 October 2025)
(Total Auction / Clearance Rate)
– Sydney: 988 / 68.2%
– Melbourne: 1,249 / 68.6%
– Brisbane: 127 / 66.1%
– Perth: 18 / 61.1%
– Canberra: 106 / 60.4%
– Adelaide: 96 / 77.1%
– Tasmania: 3 / NA
– Combined Capitals: 2,587 / 68.2%
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