Australia’s national residential rental vacancy rate rose to 1.3% in April, according to new data from SQM Research, indicating early signs of a softening rental market.
The figures mark an increase from 1.1% in March 2025 and April 2024, reflecting greater availability across major capital cities.
This development comes amid renewed housing market optimism, spurred by rate cuts and a surge in refinancing and investor lending activity.
The number of vacant residential properties nationwide climbed to 39,378 in April—up 18.7% from 33,177 in April 2024, SQM Research reported.
Melbourne recorded the sharpest increase in vacancy rate, hitting 1.8%, up from 1.1% a year earlier, with total vacancies soaring 56.9% to 9,379.
Sydney followed closely with a 1.5% vacancy rate, up from 1.2%, as vacancies rose 20.8% to 10,784.
“The rise in national vacancy rates to 1.3% reflects a shift toward a slightly eased rental market, particularly in Melbourne and Sydney, where increased supply is providing tenants with more options,” said Louis Christopher (pictured), managing director of SQM Research.
Brisbane’s vacancy rate edged up to 1%, with a slight year-on-year decline in total vacancies, suggesting ongoing market tightness.
Perth and Adelaide recorded low vacancy rates of 0.7% and 0.8%, respectively, though both cities saw increased rental availability: Perth up 32.3% to 1,425 and Adelaide up 25.8% to 1,233.
“It is typical that over the winter period, the rental market goes into somewhat of a lull with rental vacancy rates rising a notch,” Christopher said.
“This winter might prove to be a good time for tenants looking for rental properties, keeping in mind we don’t expect this lull to last any more than a few months.”
Hobart bucked the national trend, with its vacancy rate dropping to 0.7% from 1.4% in April 2024, and vacancies declining 53.7% to just 180 properties. This shift, along with decreases in Canberra and Darwin, points to continued landlord-favoured dynamics in smaller capital cities.
According to SQM Research, national advertised rents averaged $650 per week, down 0.7% over the past month but still 3.9% higher than a year ago, showing a gradual cooling from previous years' rapid increases.
These figures suggest that despite persistent tightness in some cities, increased supply in others is starting to moderate rent growth.
