August 2026 rental snapshot: Sydney and Canberra begin to loosen

Article by Alison Cheung Communications Manager 23 September 2026

Australia’s rental market is starting to show a clearer split between cities, with vacancy rates rising in Sydney and Canberra while several smaller capitals remain firmly tight. 

The national vacancy rate held at 1.3% in August 2026, unchanged from July, according to SQM Research. There were 41,039 residential vacancies across the country, around 3,300 more than a year ago. 

While the national figure has barely moved, conditions have shifted across the capitals. Sydney and Canberra are seeing more rental stock become available, while Brisbane, Perth, Adelaide and Darwin all have fewer vacant properties than they did a year ago. 

Asking rents also showed signs of slowing. National combined rents were flat over the month, with house rents falling 0.1% and unit rents rising 0.2%. Rents are still 7.3% higher than a year ago, but the next few months will show whether that growth can continue as the spring leasing season gets underway.

City-by-city

Sydney

Sydney is showing some of the clearest signs that rental conditions are easing. The vacancy rate held at 1.7% in August. That’s up from 1.4% a year earlier, with the number of vacant properties 26% higher than August 2025. 

Asking rents also fell, with combined rents down by 0.6% over the month to $910 per week. Annual rental growth slowed to 5.4%. 

Melbourne

Melbourne’s vacancy rate rose to 1.8% in August. The proportion of available homes remains the same since this time last year, suggesting rental conditions have remained relatively stable over the past 12 months. 

Asking rents edged down by 0.1% to $695 per week and are now 6.1% higher than a year ago. Unit rents were softer, falling by 0.6% over the month. 

Brisbane

Brisbane remains one of the tighter rental markets, with the vacancy rate holding at 0.9%. 

Combined asking rents increased by 0.5% over the month to $756 per week and are 7.7% higher than a year ago. House rents have risen by 9.0% annually and with vacancy still below 1%, Brisbane is expected to see further rental growth in the warmer months. 

Perth

Perth remains one of the tightest rental markets in the country, with the vacancy rate holding at 0.6%. There were 1,192 vacant properties in August, 14% fewer than a year ago. 

Reaching $802 per week, combined asking rents inched up by 0.2% over the month and saw a 7.1% increase in the past year. House rents surged by 9.5% in the same period, with little sign of easing in the market. 

Adelaide

Adelaide’s vacancy rate remained at 0.6%, with 1,019 properties available. That’s 19% fewer vacant properties than a year ago. 

Despite the tight conditions, rental growth has remained relatively modest. Combined asking rents were up by 0.4% in August and 3.4% over the year to $644 per week. 

Canberra

Canberra recorded the biggest increase in vacancy among the capitals, with the rate rising 30 basis points to 2.1%. There were 1,264 vacant properties available, 29% more than a year ago, giving Canberra the highest vacancy rate of any capital city. 

Asking rents moved lower in August, with combined rents falling by 1.6% over the month to $688 per week. Annual rental growth has slowed to 3.3%. 

Darwin

Darwin’s vacancy rate rose to 0.4%, with 94 available homes. Despite the monthly increase, vacancies remain 30% below the same time last year, so rental supply is still extremely limited. 

Combined asking rents fell by 2.4% over the month to $721 per week but remain 8.7% higher than a year ago. It should be noted that the small size of the market means monthly movements can appear volatile. 

Hobart

Hobart’s vacancy rate was unchanged at 0.6%, slightly higher than the 0.5% recorded a year ago.

Combined asking rents rose by 0.3% over the month to $607 per week and are now 10.4% higher than August 2025. Hobart is the top performer when looking at annual growth among the capital cities. Unit rents have been the main driver, surging by 16.5% over the past year. 

What happens next?

The next few months will show whether the August pause is temporary. Winter is typically a softer period for asking rents, with rental activity usually picking up from October as the active leasing season begins as we enter the warmer months. 

“The test is spring: asking rents normally firm from October into the summer leasing season. If that seasonal lift does not appear in the larger capitals, the rental upswing in those cities is over,” Louis Christopher, Managing Director of SQM Research, said. 

Mr Christopher also expects annual rental growth to slow through late 2026, once the strong months from late 2025 are no longer included in the 12-month figure. Meanwhile, rental growth is still on the cards for tight markets such as Brisbane, Perth and Adelaide. 

Disclaimer: The information enclosed has been sourced from SQM Research and is provided for general information only. It should not be taken as constituting professional advice.    

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