As we move through the second quarter of 2025, Australia’s rental landscape continues to evolve, with notable differences across states and territories. Whether you’re a seasoned investor or a new property owner, understanding the current trends can help you make informed decisions.
New South Wales (NSW)
Sydney remains one of the most competitive markets in Australia. Vacancy rates are holding steady at around 1.3%, while median weekly rents for apartments have risen to $650. Houses now command over $850 per week in many suburbs. Key drivers include population growth and limited new housing supply.
Victoria (VIC)
Melbourne’s recovery post-COVID continues, though at a steadier pace. Vacancy rates are just below 2%, and median apartment rents have reached $580 per week. The inner-city student market is rebounding, contributing to increased demand.
Queensland (QLD)
Brisbane and regional areas like the Sunshine Coast remain strong performers. Vacancy rates in Brisbane have dipped below 1%, and house rents average $700 per week. Investor demand is growing due to migration from southern states and infrastructure developments ahead of the 2032 Olympics.
Western Australia (WA)
Perth is experiencing one of the tightest rental markets in the country, with vacancy rates under 0.8%. Median rents are up 12% year-on-year, driven by interstate migration and a mining resurgence.
South Australia (SA)
Adelaide remains a steady performer, with low vacancy rates (~1%) and rising rents. The city is attractive to renters due to affordability compared to eastern states.
Tasmania (TAS)
Hobart’s rental market is cooling slightly, though it remains tight by national standards. Rents are stabilising, with moderate increases in outer suburbs.
Australian Capital Territory (ACT)
Canberra continues to post strong rental yields, with median apartment rents around $600. Demand remains high, particularly for newer, energy-efficient properties.
Northern Territory (NT)
Darwin is showing signs of stabilisation after a period of volatility. Rents have plateaued, but yields remain attractive for risk-tolerant investors.
Key Takeaways for Property owners
- Nationwide, rental demand remains strong, particularly for well-located, quality properties.
- Consider market conditions in your specific region before making investment or pricing decisions.
- Watch for legislation updates that could impact yields or vacancy strategies.