Brett Warren , National Director – Metropole Group
SQM Research’s latest vacancy rate data confirms what many investors are feeling on the ground – rental markets in our major capitals remain tight, but subtle shifts are emerging.
In Sydney, the vacancy rate held at 1.3% – steady, but still reflective of strong tenant demand. While rent growth eased slightly, house rents are averaging over $1,100 per week, showing resilience in premium suburbs and family-friendly pockets. For investors, this signals continued strength in well-located houses, especially those catering to long-term tenants.
Melbourne’s vacancy rate also remained firm at 1.8%, with a balanced market emerging. Interestingly, advertised rents decreased by 0.9% over the month, but are still up 3.4% year-over-year. Inner-city units may be stabilising, but family homes in growth corridors continue to attract solid leasing activity. Investors should watch for opportunities where new supply meets consistent demand.
Brisbane’s rental market remains tight at 1.0%, though combined rents fell slightly. Despite this, annual growth remains strong – up 6.7% – driven by interstate migration and demand for larger homes. Investors here should focus on lifestyle suburbs with strong owner-occupier appeal, as these continue to outperform.
Across all three cities, the message is clear: while vacancy rates are steady, the rental landscape is nuanced. Investors who understand local dynamics, such as shifting tenant preferences, supply pipelines, and demographic trends, will be best placed to capitalise. As we head into summer, expect modest increases in rental listings, but don’t count on a flood. Strategic property selection and long-term thinking remain key.
