Real Estate

Tide finally turns for renters as market pressure eases

Richard Wilson

May 13, 2025
4 Min Read

Tide finally turns for renters as market pressure eases

There appears to be a light at the end of the tunnel for Aussie tenants with new research suggesting an easing of rental market pressures across almost all capital cities.

Latest SQM Research shows the national vacancy rate increased to 1.3 per cent in April – up form 1.1 per cent in March, resulting in 0.7 per cent drop of the average weekly rent of $650.

Over the past 12 months, national rents had risen by 3.9 per cent, a slowdown from previous years, indicating tenants may have somewhat increased negotiating power compared to recent years.

The data, compiled from online listings across major Australian cities, highlighted a growing availability of rental properties, particularly in Melbourne and Sydney, while advertised rents show varied trends across the nation.

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“The rise in national vacancy rates to 1.3 per cent reflects a shift toward a slightly eased rental market, particularly in Melbourne and Sydney, where increased supply is providing tenants with more options,” Managing Director of SQM Research Louis Christopher said.

“However, tight markets in Hobart, Darwin, and Perth continue to favour landlords, potentially

triggering further rental price growth in those regions.

“It is typical that over the winter period, the rental market goes into somewhat of a lull with rental vacancy rates rising a notch.

“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.”

Key Vacancy Rate Findings

Based on SQM Research’s monitoring of unique online rental listings, the total number of vacant residential properties nationwide rose to 39,378 in April 2025, up 18.7 per cent from 33,177 in April 2024.

Melbourne recorded the highest vacancy rate at 1.8 per cent, up significantly from 1.1 per cent in April 2024, with vacancies surging 56.9 per cent to 9,379 properties. This suggests an oversupply or reduced demand in Victoria’s capital, potentially easing rental pressure for tenants.

Sydney, meanwhile, saw its vacancy rate rise from 1.2 per cent to 1.5 per cent, with vacancies

increasing 20.8 per cent to 10,784 properties, reflecting a loosening rental market.

Brisbane maintained a relatively tight market, with a vacancy rate of 1 per cent, up slightly

from 0.9 per cent in March 2025.

Perth and Adelaide continued to reported low vacancy rates of 0.7 per cent and 0.8 per cent, respectively throughout April, though both saw increased vacancies – with available homes in Peth climbing to 1425 and 1233 in Adelaide, indicating slight softening in these tight markets.

Canberra, Darwin, and Hobart recorded declines in vacancies, with Hobart’s vacancy

rate dropping to 0.7 per cent from 1.4 per cent in April 2024, signalling a return to a landlord-favoured market.

City-Specific Rental Trends

Sydney’s advertised weekly rent comes in at $853, with no change recorded between March and April. The higher 1.5 per cent vacancy rate suggests an easing rental market (compared to 2024), tempering current rent growth.

In Melbourne, weekly rents are $649 – up 0.1 per cent over the past month, with a year-on-

year rise of 2.3 per cent. The near balanced 1.8 per cent vacancy rate is likely contributing to this softening in rental prices.

The weekly median rent of $685 remained unchanged in Brisbane over the past month but is up 4.5 per cent year-on-year. The 1 per cent vacancy rate supports moderate rent growth,

though the flat monthly change indicates a potential plateau.