Vacancies Ease, But Remain Tight
Australia’s vacancy rate rose slightly in November but remains very tight.
New data from SQM Research shows the national vacancy rate increased to 1.3% in November from 1.2% in October.
Vacancy rates in all capital cities are well below the 3% considered to represent a balanced market. Hobart is the lowest at 0.4%, followed by Perth, 0.7%, Adelaide, 0.8% and both Darwin and Brisbane, 1%.
Sydney’s vacancy rate is 1.4%, Canberra, 1.5% and Melbourne is the highest at 2%.
In November, national advertised rents remain fairly steady, although up 5.3% on the same time last year. Australia’s average weekly asking rent is now $668.41 per week.
SQM Managing Director, Louis Christopher, says the changes in vacancy rates reflect a normal seasonal pattern.
“Rental markets are still tight overall, but some cities – particularly Sydney – are showing tentative signs of easing,” he says.
He believes rental increases in 2026 will be more moderate.
“We think it is possible 2026 will be the first year since Covid where there is a balance of sorts between new supply and the expansion in underlying demand,” he says.
