Brett Warren , National Director – Metropole Group
Vacancy rates have tightened once again, sitting at a national average of just 1.1% as of March, according to SQM Research.
That’s a stark contrast to the more balanced 2% to 3% vacancy rate that indicates a healthy market.
The cities are where the story unfolds most dramatically. Brisbane leads with a 0.9% vacancy rate, followed closely by Sydney at 1.3% and Melbourne at 1.5%.
Then there are the ultra-tight markets like Perth and Adelaide, both hovering at a mere 0.6%, according to SQM Research.
While this shows strong rental demand and the potential for consistent rental income, it also highlights the pressing housing supply issues impacting rental markets around the nation.
On the rental price front, advertised rents in capital cities have inched up by an average of 0.2% in the past month, the latest SQM Research data shows.
Sydney saw a strong 1% rise, while Brisbane was not far behind with a 0.7% increase. Darwin experienced the largest jump at 3.3%, showing that certain markets are particularly hot.
While areas like Perth and Adelaide saw slight decreases in rents, the overall trend continues to post upward momentum.
The lack of available rental dwellings means competition remains robust however, investors need to stay informed about market trends and tenant sentiment, including the impact of a slowdown in rental growth.
Furthermore, with strong immigration driving population growth, demand for rental housing is unlikely to ease anytime soon. This creates an opportunity for those willing to invest in new builds or upgrades to existing properties to meet the demand.
In short, the 2025 rental market is ripe with opportunities for well-informed investors.
Whether you’re considering purchasing additional investment properties or upgrading existing ones, understanding the data and keeping a close eye on market movements can help you make the most of the current market conditions.
