As we move through the cooler months, Australia’s rental market is showing signs of seasonal rebalancing – but don’t mistake that for relief.
In Sydney, Melbourne and Brisbane, vacancy rates remain tight, and asking rents continue to edge upward, albeit at a slower pace.
Sydney’s vacancy rate nudged up to 1.6% in June, according to SQM Research, a modest rise that’s more about seasonal turnover than a shift in fundamentals.
Asking rents dipped slightly to $852 per week, but landlords still hold the upper hand. Units are holding firm, while houses have softened a touch – likely a reflection of shifting tenant preferences.
Melbourne’s vacancy rate climbed to 1.8%, the highest among the three cities. That could signal easing demand or new supply entering the market.
Yet, rents remain resilient, sitting at $654 per week. Interestingly, houses are driving the growth here, suggesting families are still competing fiercely for space.
Brisbane continues to be the standout. Vacancy rates are stuck at a critically low 0.9%, and asking rents are holding strong at $689 per week.
Both houses and units are gaining traction, with annual growth nearing 4%. The Sunshine State’s appeal clearly isn’t cooling off.
So, what does this mean for investors? It’s still a very favourable environment –especially in Brisbane.
For tenants, the pressure remains, though Melbourne may offer a glimmer of balance.
As always, it’s not just about the numbers – it’s about understanding the story they tell.
And right now, that story is one of resilience, competition, and a market that’s still firmly tilted towards undersupply.
About Brett Warren Brett Warren is National Director of Metropole Properties and uses his two decades of property investment experience to advise clients how to grow, protect and pass on their wealth through strategic property advice.
