Rents steady as listings surge in spring revival

Australia’s rental market remained tight in October, with SQM Research reporting a national vacancy rate of 1.2%, unchanged from September.

Residential vacancies edged up to 36,152 dwellings, showing that while conditions are still constrained, some capitals are beginning to ease.

“The national vacancy rate holding at 1.2% suggests the rental market remains very tight, with little sign of meaningful supply increases,” said Louis Christopher (pictured), Managing Director of SQM Research.

While the rental market remains tight, broader housing activity is picking up. SQM reported a 10.9% jump in total property listings to 252,557 dwellings in October — an unusually strong lift for spring that points to renewed seller confidence. Sydney and Melbourne led the gains, while Adelaide and Canberra rose more than 15%.

Rents stabilising as supply edges higher

National advertised rents rose just 0.2% over the past 30 days but remain 4.6% higher year-on-year, SQM said.

The national average rent now sits at $664.77 per week, while the capital-city average is $755.65, signalling a modest slowdown after months of steady growth.

House rents lifted 1.9% for the month, while unit rents fell 0.9%, showing signs of stabilisation in apartment demand.

“While some capitals are showing temporary easing in rent growth, underlying conditions remain undersupplied, particularly in cities such as Perth, Adelaide, and Hobart,” Christopher said.

City-by-city: mixed signs of relief

Vacancy conditions remained steady or improved slightly across most capitals:

• Sydney: 1.3%, 9,553 vacancies — demand steady amid limited supply.
• Melbourne: 1.8%, 9,713 vacancies — a balanced market with new listings.
• Brisbane: 1.0%, 3,391 vacancies — tight but rent growth easing.
• Perth: 0.7% — still among the nation’s lowest.
• Adelaide: 0.8% — remains undersupplied.
• Canberra: 1.4%, down from 1.6% as summer turnover begins.
• Darwin: 0.7% — listings up slightly.
• Hobart: 0.4% — the tightest capital market.

“Brisbane continues to attract strong demand from interstate migration, while Melbourne and Canberra appear to be stabilising following recent surges in new rental listings,” Christopher said.

What this means for brokers

For mortgage brokers, stabilising rents and rising listings suggest a gradual rebalancing between renting and buying, opening opportunities for both investors and first-home buyers.

Although conditions remain tight, Christopher expects little near-term relief:

“Overall, we expect rental conditions to remain tight through the summer months, with only a modest increase in vacancies likely in early 2026.”

With national stock climbing and buyer confidence returning, brokers are well placed to guide investors and renters considering a move into ownership.

Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.