Rental relief emerges in Sydney and Canberra while smaller capitals stay tight

Australia’s headline rental vacancy rate is barely moving, but the experience of finding a home now differs considerably between cities.

A rental-market snapshot published by PropertyMe on Wednesday, drawing on SQM Research’s August figures, showed the national vacancy rate holding at 1.3 per cent. There were 41,039 vacant rental properties, about 3,300 more than a year earlier.

That national result conceals an emerging divide. Rental availability has improved in Sydney and Canberra, while Brisbane, Perth, Adelaide and Darwin have fewer vacant homes than they did in August 2025.

For renters, this means broad claims about a single Australian rental market are increasingly unhelpful. Applicants may be gaining some bargaining room in parts of Sydney and Canberra while still confronting intense competition in smaller capitals.

Sydney shows the clearest change

Sydney’s vacancy rate remained at 1.7 per cent in August, but the number of available properties was 26 per cent higher than a year earlier. SQM Research counted 12,821 vacancies across the city.

Combined advertised rents fell 0.6 per cent over the month to about $910 a week, while advertised house rents dropped 1.2 per cent. Annual combined rental growth slowed to 5.4 per cent.

These figures do not mean Sydney has become an easy or inexpensive place to rent. A vacancy rate of 1.7 per cent remains low, and advertised rents are still well above their level a year ago. However, rising availability may reduce the pressure to make rushed decisions or offer more than a property is worth.

Canberra recorded a more pronounced rise in available stock. Its vacancy rate increased from 1.8 per cent in July to 2.1 per cent in August, the highest among the capitals. Vacancies were 29 per cent higher than a year earlier, while combined advertised rents fell 1.6 per cent over the month.

Melbourne sat between the loosening and tight markets. Its vacancy rate increased to 1.8 per cent, unchanged from a year earlier, and combined advertised rents edged 0.1 per cent lower during the month.

Pressure remains elsewhere

Conditions remain much tougher for renters in Brisbane, Perth and Adelaide.

Brisbane’s vacancy rate held at 0.9 per cent, with vacant stock 10 per cent lower than a year ago. Combined advertised rents increased 0.5 per cent during the month and were 7.7 per cent higher annually.

Perth and Adelaide both recorded vacancy rates of 0.6 per cent. Perth had 14 per cent fewer vacancies than a year earlier, while Adelaide’s vacant stock was down 19 per cent.

SQM Research reported that Perth’s combined advertised rent reached about $802 a week after a 0.2 per cent monthly increase. Adelaide’s combined rent rose 0.4 per cent to about $644.

Darwin remained the tightest capital at 0.4 per cent, although its small rental market can produce volatile monthly movements. Hobart’s vacancy rate was 0.6 per cent, with its advertised rents recording the strongest annual growth among the capitals.

Spring will test the shift

National combined advertised rents were flat over the month, although they remained 7.3 per cent higher over the year. SQM Research noted that winter is normally a softer leasing period, making spring and early summer the more important test.

If rents fail to rise during the season when leasing activity normally strengthens, that would provide firmer evidence that the upswing has ended in the larger east-coast capitals.

The picture is less encouraging in the smaller capitals. Vacancy rates below 1 per cent indicate renters still have few alternatives, leaving landlords with greater pricing power when a well-located property reaches the market.

What it means for you

• Sydney and Canberra renters may have more time to compare properties, but availability remains well below a balanced market.
• Brisbane, Perth and Adelaide applicants should prepare documents before inspections because competition remains strong.
• Landlords in loosening markets should compare nearby listings carefully rather than relying only on last year’s rent.
• National rental figures can hide major local differences, so check conditions at suburb and dwelling-type level.