October 2025 rental market snapshot

Article by Alison Cheung Communications Manager 13 November 2025

Key points

• Australia’s rental vacancy rate held at 1.2% for the fourth month in a row.

• National rents increased by 4.9% annually, with house and unit rents up by 6.1% and 4.6% respectively.

• Hobart, Perth and Adelaide remain the most competitive markets for tenants, with vacancy rates stuck below 1.0%.

Australia’s rental market stayed tight in October 2025, with the national vacancy rate holding at 1.2% for the fourth month in a row, according to the latest data from SQM Research. Over the month, 106 available homes were added to the rental market, making the total number 36,152 nationwide.

Rents still on the rise but growth rate easing as demand stabilises

Across the country, combined advertised rents averaged at $665 per week, climbing by 1.6% in the 30 days to 12 November 2025 and 4.9% in the past 12 months. In contrast to September, rental values for houses grew faster than that of units. 

• House rents lifted by 2.1% to $742 per week, an annual increase of 5.4%. 

• Unit rents inched up by 0.9% to $577 per week and 4.2% year-on-year. 

The capital city average sits at $759, up slightly by 0.4% over the 30-day period and 5.2% in the past 12 months. 

Growth rates have eased slightly from previous months but Louis Christopher, Managing Director of SQM Research, said “the rental market remains very tight, with little sign of meaningful supply increases”.

Hobart, Perth and Adelaide still the toughest to rent in 

Hobart, Perth and Adelaide continue to be Australia’s most competitive rental markets, with renters competing for less than 1.0% of homes in each city. 

• Hobart’s vacancy rate steadied at the record-low 0.4% with only 107 homes available for rent. After three straight monthly declines leading into October, the city remains the tightest market in the country. Rents rose by 1.3% in the 30-day period to $555 and are 9.9% higher year-on-year, making Hobart the strongest annual performer out of the capital city rental markets. 

• Vacancy in the Perth rental market was also unchanged at 0.7%, with 1,304 dwellings available. The city’s undersupply continues to fuel competition with 6.0% rental value increase over the year, even as rents (at $758) showed no growth over the 30-day period. 

• Adelaide’s vacancy held steady for the seventh consecutive month at 0.8%, with 1,215 vacancies. A lack of new supply is pushing up rents to $625, which rose by 1.0% in the 30 days and 2.7% over the past 12 months. 

With stock sitting at or near record lows, Property Managers in these markets are still managing extremely strong tenant competition and rising owner expectations. 

East coast capitals show signs of balance

The three largest capitals are showing more balance between supply and demand. 

• After four consecutive months of tightening availability, Sydney’s vacancy rate stayed at 1.3% for the second month in a row, with 9,553 vacancies. Rents lifted by 1.2% for the month to $886 and are 5.8% higher year-on-year, reflecting strong but moderating demand. 

• The portion of homes available for rent in Melbourne did not change from 1.8%, with 9,713 vacancies. The city continues to have the highest rate of empty properties as new listings and tenant demand remain steady. It is the only capital city where both rental values for houses and units fell. Rents declined by 1.0% in the month to $647 but were up overall by 3.3% year-on-year. 

Vacancy in Brisbane rebounded up to 1.0%, though it remains tight with 3,391 vacancies. Rents, at $704, showed no growth over the month but are still 7.1% higher than a year ago, as population growth from interstate migration props up demand. 

Mixed seasonal trends in Canberra and Darwin

• In Canberra, the rental market tightened by 20 basis points in one month to 1.4%, with 860 homes available. The city’s typical pre-summer activity pushed rents up by 2.8% in the month to $673, which is also 2.8% higher than last year. 

• Vacancy in the Darwin rental market matched September’s 0.7% rate, after staying at 0.5% for four months in a row. While still very low, stock rose slightly to 181 properties, while rents increased by 0.8% to $650 and 8.0% in the past 12 months. 

Hot summer ahead for the rental market

With the number of available homes not expected to rise much any time soon, the rental market will continue to be extremely tight through the end of the year. 

“While some capitals are showing temporary easing in rent growth, underlying conditions remain undersupplied, particularly in cities such as Perth, Adelaide, and Hobart,” Christopher said. 

“Overall, we expect rental conditions to remain tight through the summer months, with only a modest increase in vacancies likely in early 2026.” 

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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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