Australia’s national residential vacancy rate rose to 1.4% in December 2025, up from 1.3% in November, according to new data from SQM Research.
The number of vacant rental dwellings increased to 43,850, reflecting a typical year-end lift in available stock. Despite the rise, vacancies remain below long‑term averages, meaning the rental market continues to favour landlords across most capital cities.
This comes as total national residential listings dropped 12% month‑on‑month in December to 210,237 dwellings, leaving overall stock 9.8% lower than a year ago and underscoring deep supply constraints.
Sydney’s vacancy rate climbed to 1.8% from 1.4% in November, with 13,252 dwellings available as seasonal turnover and new listings hit the market.
Melbourne held steady at a 2% vacancy rate and 10,667 vacancies, continuing to post some of the most balanced rental conditions among the major capitals.
Brisbane’s vacancy rate rose to 1.2% from 1%, with 4,101 vacant dwellings, but conditions remain tighter than before the pandemic.
Perth’s vacancy rate was unchanged at a very low 0.7% with 1,384 dwellings available, while Adelaide inched up to 0.9% with 1,398 vacancies, both signalling ongoing supply constraints.
Canberra vacancies increased to 1.9% from 1.5%, with 1,142 dwellings available after a seasonal lift in listings, while Darwin held at 1% with 255 dwellings vacant.
Hobart remained the tightest capital city rental market, with its vacancy rate steady at just 0.4% and only 124 dwellings available.
National advertised rents increased through early January, with combined rents up 2.4% over the past 30 days and 5.8% higher year‑on‑year, pointing to renewed upward momentum after a brief seasonal easing.
The national combined rent average now sits at $684.62 per week, while the capital city average has lifted to $766.49 per week, supported by broad‑based gains across both houses and units.
House rents rose 3.4% for the month and 7% over the year, while unit rents increased 1% month‑on‑month and 4.1% annually, indicating solid demand for higher‑density rentals.
By city, Sydney’s combined rents were flat for the month but are 6.7% higher over the year, with house rents averaging $1,113.58 per week. Melbourne’s combined rents rose 1.2% for the month and 4.1% annually, Brisbane’s increased 1.3% for the month and 7.1% year‑on‑year, and Perth’s climbed 1.1% over the month and 4.5% over the year.
Adelaide’s combined rents were up 0.6% for the month and 2.8% annually, while Canberra saw a 1% monthly decline and a 1.6% annual fall, signalling a short‑term easing. Darwin’s rents rose 0.2% for the month and 9% year‑on‑year, and Hobart posted one of the strongest results, with combined rents jumping 2.9% for the month and 10% over the year.
Sam Tate (pictured), head of property at SQM Research, said December’s higher vacancy rate reflects normal seasonal dynamics rather than a structural shift.
“The lift in the national vacancy rate to 1.4% in December is largely seasonal, reflecting the usual increase in rental turnover and listings at the end of the year,” Tate said. “While vacancies have risen, they remain well below long-term averages, indicating that underlying rental market conditions are still tight.”
He noted that “most capital cities experienced some degree of easing in December, particularly Sydney and Canberra. However, markets such as Perth, Adelaide, and Hobart remain exceptionally constrained, with vacancy rates still below 1%, limiting meaningful relief for tenants.”
Tate added that rents are likely to keep rising into 2026 without extra supply.
“Importantly, the latest rent data shows renewed upward momentum entering January, suggesting the late-2025 softening in rental growth is likely to be temporary," the SQM Research leader said. :Without a sustained increase in new rental supply, affordability pressures are expected to persist into 2026.”
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