October 7th, 2025
September 2025 property market update
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Australia’s rental market stayed under pressure in September, with the national vacancy rate stuck at 1.2% for the third month in a row, according to the latest data from SQM Research. Most cities saw little change, keeping competition high for renters. Smaller capitals like Hobart, Adelaide and Perth remain the hardest places to find a home.
Capital city vacancy rates in September 2025
East coast capital cities
On the east coast, vacancy rates stayed low across the board. Sydney’s rate fell again to 1.3%, down from 1.4%, marking four months in a row of declining availability. Just 9,617 homes were available, with strong tenant demand and limited new housing continuing to push rents higher.
Melbourne held steady at 1.8% with 9,407 vacancies. It continues to record the highest vacancy rate among the capitals, though this has tightened from 2.2% nearly a year ago in December 2024. While Melbourne’s vacancy low by historical standards, it suggests a more balanced market compared with other cities.
Brisbane saw a small drop in rental availability to 0.9% from 1.0%, with 3,329 homes available. Conditions remain tight but rent growth has started to slow slightly.
The nation’s capital
Canberra’s vacancy rate stayed at 1.6%, with 970 dwellings available. Seasonal patterns continue to affect the market, but conditions remain tight.
Capitals with sub-1% vacancy
Several smaller capitals continue to face extreme rental competition. Perth stayed at 0.7% with just 1,362 dwellings available, keeping pressure on tenants as supply remains limited.
Adelaide has now been stable for six months at 0.8%, with 1,207 vacancies. Ongoing supply constraints are still keeping rents high.
Hobart remains the hardest place in the country to find a rental, dropping again to 0.4% from 0.5%. That’s three months in a row of decline, leaving almost no spare stock on the market.
Darwin was the only capital to record an increase, rising to 0.7% from 0.5% after four months of stability. Even with this small lift, Darwin is still among the tightest rental markets nationally.
The bigger picture
The data paints a picture of a country with little movement across the rental market.
“The national vacancy rate holding at 1.2% suggests the rental market remains very tight, with little sign of meaningful supply increases,” Louis Christopher, Managing Director of SQM Research, said.
“Sydney and Brisbane continue to see strong tenant demand, while Hobart remains at near record-low vacancy levels. Rents are still rising in most capitals, particularly for houses, despite a slight easing in rental growth rates compared to last year.
“Overall, we are still seeing an undersupplied rental market, although conditions appear to be stabilising in some cities such as Melbourne and Canberra.”
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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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