Tight vacancy rates
According to Cotality's Quarterly Rental Review, the Australian rental market is demonstrating renewed strength, as national vacancy rates have reached a new record low. The review indicates that national dwelling rents increased by 1.4% in the third quarter, marking the largest three-month rise since June 2024. In comparison, rents rose by 1.1% in the second quarter of the year, highlighting a significant upward trend in national rental prices. Over the 12 months leading up to September, rents have increased by 4.3%. The cities experiencing the most significant rental growth are Brisbane and Sydney, with rises of 1.7% and 1.5%, respectively, compared to June. Interestingly, Adelaide was the only city to see a slowdown in rental growth.
Rental growth is gaining momentum due to a persistent shortage in supply, as indicated by the record-low national vacancy rate of 1.5% in September. In September, the median weekly rental amount reached $702. Rentals in regional areas, however, are more affordable, averaging around $591 per week. Throughout the second half of 2024 and into 2025, regional areas have outperformed capital cities, with affordability serving as an appealing advantage. The gap in rental prices between regional and capital markets has decreased from $123 in May 2024 to $111 in September.
Vacancy Rates Across Australia
Cotality October Data
