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Australia’s national rental vacancy rate increased to 1.3% in February 2025, up from 1.0% in January, according to data from SQM Research. The number of available rental properties rose to 38,427, an increase from 30,161 in the previous month.
The data shows vacancy rates rising across major cities. Sydney’s rate grew to 1.5%, with 11,155 properties listed as vacant compared to 10,151 in January. Melbourne’s rate increased to 1.8%, representing 9,326 vacant dwellings. Brisbane recorded a vacancy rate of 1.0%, with 3,445 rental properties available.
Other capital cities recorded similar trends. Canberra’s vacancy rate increased from 1.3% to 1.6%. Perth and Adelaide saw smaller increases to 0.6% and 0.7%, respectively. Darwin’s vacancy rate remained unchanged at 1.1%, while Hobart’s rose to 0.6%.
Compared to February 2024, vacancy rates are slightly higher nationwide. SQM Research calculates vacancy rates based on online rental listings advertised for three weeks or more. This method differs from other approaches that rely on agency surveys or raw listing data.
Since November last year, Australia’s residential rental vacancy rate has risen to 1.4%, the highest in three years.
Read more: Rental vacancy rates increase in November
Alongside the increase in vacancy rates, advertised rents in capital cities also changed, with regional areas seeing greater price increases.
In Sydney, combined weekly rents fell slightly by 0.1% to $844, driven by a 0.4% decline in house rents. Melbourne recorded a 1.0% increase, raising combined rents to $646, supported by a 1.7% rise in unit rents. Brisbane’s combined rents also grew by 1.0%, reaching $676 per week.
Perth’s weekly rents increased by 0.3% to $753. Adelaide saw a 1.6% rise, bringing rents to $622. In Canberra, rents rose by 0.2% to $686.
Darwin was the only capital city to record a decline, with combined rents falling 1.0% to $598 per week. Hobart’s combined rents increased by 1.5% to $529.
Nationally, combined rents increased by 1.8% to $648 per week. Across all capital cities, rents rose by 0.4% to $737 per week.
SQM research managing director Louis Christopher said that the vacancy rate increase was unexpected, as total rental listings did not rise during the period.
"Advertised rental properties were taking about 3 to 4 days longer to rent and occupy on average than January. But I don’t regard that as a material increase," said Christopher.
Christopher suggested that vacancy rates might decline again in March, a period that typically sees higher rental demand. He also pointed out that while advertised rents are still rising, the rate of increase has slowed compared to the period between 2021 and 2023. However, the pace of rent growth continues to outstrip overall inflation.
The data points to continued pressure on the rental market, driven by population growth and limited housing supply.
Will the increase in vacancy rates bring any relief to renters, or will the market remain tight in the months ahead? Share your views in the comments below.
