Brett Warren , National Director – Metropole Group
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.
