Rental returns are strengthening across Australia, with the average weekly rent hitting $696.94, up by 7.3% on a year ago, according to SQM Research.
Properties are also letting quickly. While the national vacancy rate saw an increase in April, it still sits at just 1.2%, meaning the pool of available rentals remains thin and competition among tenants is still strong. Cities like Darwin, Brisbane and Perth are particularly tight, with Darwin taking the top spot as the country’s most competitive rental market. Landlords in those markets have particularly strong leverage when it comes to setting rents and securing tenants fast.
City by city
Sydney
Sydney’s vacancy rate rose to 1.3% in April, up from 1.1% in March, with 9,696 rental properties listed as vacant.
Despite the lift in available stock, rents continued to trend higher. Combined advertised rents rose by 0.3% over the month and 7.3% annually, with average rents across houses and units reaching $918 per week.
Melbourne
Melbourne recorded a slight increase in vacancy rates, rising from 1.4% to 1.5% during April. A total of 8,079 dwellings were vacant across the city, keeping Melbourne among the more balanced rental markets nationally.
Advertised rents continued to rise steadily, with combined rents increasing by 0.3% month-on-month and 6.1% over the year. Weekly rents averaged at $687.
Brisbane
Brisbane’s vacancy rate remained tight at 0.8%, reinforcing the city’s position as one of the country’s most competitive rental markets. Around 2,900 dwellings were recorded as vacant during April.
Rental prices continued to surge, with combined rents increasing 1.4% over the month and 8.1% year-on-year. Ongoing population growth and limited housing supply continue to place pressure on the city’s rental market.
Perth
Perth remained one of the most constrained rental markets in Australia despite vacancy rates edging slightly higher to 0.6% from 0.5% in March. Just 1,138 dwellings were recorded as vacant across the city.
While combined rents declined by 0.2% over the month, prices remain 6.3% higher than the same time last year, suggesting some moderation in the short term following a prolonged period of rapid growth.
Adelaide
Adelaide’s vacancy rate stayed flat at 0.7% in April, with just 1,117 rental properties available across the city, pointing to continued pressure on supply.
Rents dipped by 0.8% over the month but are still 4.6% higher than a year ago. Units continue to outperform houses on rental growth, a sign that renters are gravitating toward more affordable options.
Canberra
Canberra experienced one of the larger monthly shifts in vacancy rates, increasing from 1.1% to 1.4% in April. The number of vacant rentals rose to 873 dwellings, a possible sign that conditions are starting to loosen after a period of limited availability.
At the same time, combined rents increased by 1.3% over the month and 1.4% annually.
Darwin
With only 75 properties empty across the whole city, Darwin is Australia’s most constrained rental market. The vacancy rate fell further to just 0.3%, making it even harder to find a home there in April.
That squeeze is showing up in rents, which rose by 1.5% in April alone, the biggest monthly jump of any capital city. In the past year, rents jumped by 11.3%, reflecting the competition for rental homes in Darwin.
Hobart
Hobart’s rental market remains extremely tough despite a small uptick in availability. The vacancy rate edged up to 0.5% in April from 0.4% in March, with just 140 homes sitting empty across the entire city.
Rents there are rising faster than anywhere else in the country, up by 15.2% over the past year and still climbing, with a further 0.5% increase in April alone.
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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