SQM Research has released its latest data on residential property vacancy rates.
Australia’s rental market has shown dynamic shifts over the past year, with vacancy rates stabilising across most capital cities while reflecting notable changes compared to May 2024. The national vacancy rate held steady at 1.2% in May 2025, after 1.3% in April 2025, marking a slight monthly decline.
Key city vacancy rates in May 2025
Based on SQM Research’s monitoring of unique online rental listings, the total number of vacant residential properties nationwide rose to 37,879 in May 2025, from 35,641 in May 2024.
- Sydney: 1.5%, up 0.1% year-on-year, stable since April 2025.
- Melbourne: 1.7%, up 0.4% from May 2024, slightly lower than April’s 1.8%.
- Brisbane: 0.9%, down 0.1% compared to last year and 0.1 % from April, indicating tightening availability.
- Perth: 0.7%, up 0.1% year-on-year, unchanged since April 2025.
- Adelaide: 0.8%, up 0.2% from May 2024, stable month-on-month.
- Canberra: 1.5%, down 0.3% year-on-year and 0.1 % month-on-month, pointing to a gradual decline in rental vacancies.
- Darwin: 0.5%, down 0.4% from last year and 0.2 % from April, reflecting a tightening market.
- Hobart: 0.6%, down 0.8% from May 2024, stable since April 2025.
Advertised rents analysis
SQM Research’s latest Weekly Rents Index for the week ending 12 June 2025, available via its property index, tracks weekly rental prices, monthly percentage changes, and year-on-year percentage changes for houses and units combined, based on listings active for at least three weeks.
National trend
The latest SQM Research Weekly Rents Index shows mixed shifts across Australia’s capital cities, with rents adjusting in response to supply and demand dynamics.
Nationally, combined rents average $649.18, with a 0.1% monthly decline but a 4.2% annual increase, highlighting varied conditions across states. Analysts will continue monitoring rental trends amid evolving housing market dynamics.
City-specific insights
- Sydney: Advertised weekly rents are $854.69, reflecting a 0.2% decline over the past month but a 1.7% increase compared to last year. The 1.5% vacancy rate suggests rental conditions remain steady, tempering rent growth.
- Melbourne: Rents sit at $651.62, up 0.5% over the past month and 2.4% over the year. The 1.7% vacancy rate indicates ongoing market fluctuations.
- Brisbane: Weekly rents average $684.41, with a 0.2% monthly decline but a 3.8% annual rise, as vacancy rates tighten to 0.9%.
- Perth: Advertised rents stand at $756.93, increasing 0.4% monthly and 6.2% annually, reflecting steady demand amid 0.7% vacancy rates.
- Adelaide: Rents are $611.21, declining 0.3% over the month but up 3.1% year-on-year, with vacancy rates holding at 0.8%.
- Canberra: Weekly rents average $675.82, down 2.3% monthly but up 4.2% annually, with vacancy rates easing to 1.5%, supporting rental availability.
- Darwin: Rents are $633.37, up 2.7% over the past month and 13.1% year-on-year, with vacancy rates dropping to 0.5%, reflecting tightening supply.
- Hobart: Advertised rents reach $543.69, growing 3.6% monthly and 7.6% annually, as the 0.6% vacancy rate underscores ongoing market constraints.
Commentary Louis Christopher, Managing Director of SQM Research, commented: “Overall rental vacancies remained steady from April to May. Rental growth also remained steady but continued to be elevated given the ongoing shortage in the rental market.
We are likely to have ongoing elevated rents for a long period of time, until we have equilibrium between tenancy demand and rental supply.
Thant’s not likely to happen until such time as we a slow down in population rate and a meaningful increase in new dwelling completions.”
