Australia’s rental market showed mixed results in September, with the national vacancy rate rising to 1.4%, according to SQM Research, up from 1.2% a year earlier. The number of vacant properties increased to 42,290, compared with 41,039 in August, pointing to a gradual improvement in rental availability.
However, rents continued to rise nationally. Combined advertised rents increased by 0.3% over the month to $704 per week and were 7.6% higher than a year ago. While rising vacancies and falling unit rents suggest conditions may be easing in Sydney and Melbourne, rental supply remains tight across several other capitals.
House rents climb as unit rents fall
Nationally, advertised house rents rose by 1.6% over the month, while unit rents fell by the same amount. Unit rents declined in seven of the eight capital cities, suggesting tenants looking for units may be starting to see some relief, even as house rents continue to climb.
For agencies, this highlights the importance of keeping rental appraisals up to date. Leasing teams can add value by helping owners understand why a house in their area may still command a rent increase while a comparable unit may need a more competitive asking price to attract tenants. Clear advice backed by current market data can help agencies set realistic expectations, support owners through pricing decisions and reduce the risk of properties sitting vacant.
“Sydney is the market to watch. Vacancies are well up on a year ago, and while house rents rose over the month, unit rents fell,” Louis Christopher, Managing Director of SQM Research, said.
“That divergence suggests rental pressures are beginning to ease, starting with the unit market.”
City-by-city rental snapshot
Sydney
Sydney’s vacancy rate rose to 1.8% in September, up from 1.7% in August and 1.3% a year earlier. There were 13,331 vacant properties, the highest number among the capital cities.
Combined advertised rents rose by 0.7% to $915 per week in the 30 days to 12 October 2026. House rents increased 2.3% to $1,159, while unit rents fell 1.0% to $749. The combination of rising vacancies and falling unit rents points to early signs of relief for renters looking for apartments.
Melbourne
Melbourne’s vacancy rate increased to 1.9%, up from 1.8% in August and a year earlier. This was the highest vacancy rate among the capitals, on par with Canberra, indicating comparatively greater rental availability.
Combined advertised rents fell 0.7% over the month to $691 per week but remained 5.7% higher over the year. House rents edged down 0.1% over the month, while unit rents dropped by 1.3%. With more rentals available, there are some signs that conditions could be starting to ease.
Brisbane
Brisbane’s vacancy rate stayed at 0.9% in September, so finding a rental remains a challenge for tenants.
Combined advertised rents held at $754 per week, although they were still 7.2% higher than a year ago. House rents have climbed 8.1% over the past 12 months, with little sign that Brisbane’s limited rental supply is letting up.
Perth
Perth’s vacancy rate remained at 0.6%, keeping rental conditions tight despite signs that rent growth is slowing.
Combined rents fell by 0.3% over the month to $795 per week and were 5.0% higher over the year. Unit rents rose by just 1.9% annually, the weakest growth among the capitals, while house rents increased by 6.6%.
Adelaide
Adelaide’s vacancy rate remained unchanged at 0.6%, with rental supply continuing to be constrained.
Combined rents fell by 0.7% over the month to $647 per week but were still 4.5% higher than a year ago. Unit rents declined by 1.9% during the month, although annual growth remained at 6.4%.
Canberra
Canberra’s vacancy rate fell to 1.9%, down from 2.1% in August. Despite the monthly decline, availability remains relatively high compared with most other capitals.
Combined rents eased by 0.2% over the month to $686 per week and were 4.8% higher over the year. House rents rose by 1.1%, while unit rents fell by 1.5%, reflecting the wider divergence between property types.
Darwin
Darwin’s vacancy rate increased to 0.6%, up from 0.4% in August, although rental availability remains limited.
Combined rents rose by 0.6% over the month to $735 per week and were 13.9% higher over the year, the strongest annual growth of any capital. House rents recorded the highest annual growth nationally, rising by 14.0%.
Hobart
Hobart’s vacancy rate fell to 0.5%, down from 0.6% in August. With just 127 vacant properties, it had the lowest number of vacancies among the capitals, leaving renters with limited choice.
Combined rents declined 0.5% over the month to $600 per week but were 9.5% higher over the year. Unit rents recorded the strongest annual growth of any capital at 14.6%, despite falling by 5.4% over the month.
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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