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Sydney and Hobart recorded the sharpest tightening in vacancy conditions in August, while Melbourne and Canberra saw slight increases, SQM Research reported.
The national vacancy rate remained unchanged at 1.2% with 37,742 vacant dwellings across Australia, down by 121 compared with July.
Sydney’s vacancy rate fell to 1.4% from 1.5%, with 10,211 properties available – the lowest level in more than a year. Hobart declined to 0.5% from 0.6%, with vacancies at 144.
Melbourne stayed at 1.8% but vacancies rose to 9,620, pointing to slower leasing activity. Canberra moved up to 1.6% from 1.5%, with vacancies rising to 978.
Other capitals were stable. Brisbane rose slightly to 1.0% with 3,423 vacancies. Perth remained at 0.7%, with vacancies at 1,389. Adelaide held at 0.8% with 1,257 available. Darwin’s rate was steady at 0.5%, with vacancies rising to 134.
SQM Research said its calculations are based on rental listings advertised for at least three weeks compared with the total number of established rental properties. The firm stated this approach differs from survey-based methods or raw listing counts.
National advertised rents rose 0.4% in August and 4.6% over the year, with units generally increasing faster than houses. For the week ending 4 September 2025, the national combined rent average stood at $653.54, up 0.4% for the month but 2.2% lower year-on-year. The capital city average reached $747.70, a 2.85% annual decline.
By city, Sydney rents rose 0.5% in the month and 4.2% over the year, supported by demand for units. Melbourne recorded no monthly change, with annual growth at 2.9%. Brisbane rents rose 0.6% in August and 7.3% year-on-year. Perth rents declined 1% in the month but were 5.6% higher annually. Adelaide was up 0.4% in the month and 2.4% annually. Canberra fell 0.9% in August, though rents were 1.2% higher year-on-year.
Darwin dipped 0.1% month-on-month, while annual rents rose 8.9%, with unit rents increasing 16.7%. Hobart recorded a 0.9% monthly increase and 10.6% growth year-on-year.
SQM Research managing director Louis Christopher (pictured) said the national vacancy rate holding at 1.2% pointed to shortages in rental supply across most capitals. He noted Sydney’s 1.4% rate was linked to ongoing tenant demand and limited stock.
He also said Hobart and Darwin recorded double-digit annual rent increases, largely driven by units.
“Hobart and Darwin stand out with double-digit annual rent growth, driven largely by unit demand. Nationally, rents continue to edge higher, particularly for units, which are now outperforming houses in most capitals,” said Christopher.
“Overall, the data points to a market that remains tight, albeit the days of 20%+ rental growth are well and truly behind us. Investors should note the resilience in Brisbane and Hobart, while policymakers may need to monitor affordability pressures in Sydney and Darwin.”
