Rental vacancy rates hit new low, new PropTrack report finds

By Cameron Thomson · · 2 min read
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Australia’s national rental vacancy rate fell 0.6% down to 1.06% in September according to the latest PropTrack Market Insight Report. It also found that vacant properties are now 55% below March 2020 levels.

Overall, rental vacancies were down in both capital cities and regional areas. Most cities and regions have seen vacancy rates fall on a quarterly basis. The report notes that vacancy rates are now below 1% in three capital cities with other markets potentially joining the list as demand continues to grow.

Cities
Vacancy Rate
Region
Vacancy Rate
Sydney
1.18% (-0.11%)
NSW 
1.22% (-0.08%)
Melbourne
1.15% (-0.6%)
VIC
1.10% (0.02)
Brisbane
0.86% (0.02%)
QLD
0.89% (-0.06%)
Adelaide
0.65% (-0.04%)
SA
0.65% (-0.05%)
Perth
0.71% (0.01%)
WA
1.11% (-0.14%)
Hobart
1.40% (-0.13%)
TAS
1.16% (-0.07%)
Darwin
1.80% (0.10%)
NT
1.50% (-0.49%)
ACT
1.62% (-0.11%)
Average Regional
1.06% (-0.06%)
Average City
1.06% (-0.05%)
National Vacancy Rate 
1.06% (-0.06%)

Sydney's vacancy rate slid to 1.18%, while Melbourne followed closely with a rate of 1.15% on a monthly basis. Both cities continue a trend of quarterly decline in rental vacancies, mirroring the national trend.

On the other hand, vacancy rates held relatively steady in Brisbane, rising a slight 0.02 percentage points to 0.86%, while Adelaide and Perth recorded the lowest vacancy rates with 0.65% and 0.71% respectively. Hobart saw the sharpest drop in capital vacancies over the month, falling by 0.13 percentage points to 1.4%. 

Regional areas haven’t been immune either. Apart from Victoria, regional vacancy rates have dropped, with regional South Australia at 0.65% and Queensland at 0.89%. However, the biggest decline so far has been in the Northern Territory with a monthly fall of 0.45%

How will renters be affected by lower vacancy rates?

While cities and regional areas have seen variable rates of decline, the broadly consistent fall to 1.6% on average points to a tougher rental market.

“Declining vacancy rates are increasing competition for rentals and placing growing pressure on rents.” says PropTrack economist Anne Flaherty. “As a result, rents are predicted to continue rising at above-trend levels over the coming months, particularly in the capitals.”

In the long run, It remains to be seen whether recent legislation and the increasing pipeline of build-to-rent properties will help to alleviate the tight market for both renters and prospective home buyers. 

Look at a new home loan? Check out some of the providers below and compare rates and features. 

Last updated 7 May 2025 Important disclosures and comparison rate warning*
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  • Promoted

    Unloan Variable Home Loan

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    Variable Home Loan 90

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  • Fixed Home Loan

    • Fixed rate
    • Owner occupier
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    • 5% min deposit
    • Redraw available
    • Cashback
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    6.00 % p.a.
    Initial monthly repayment
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    • Get up to $4,000 cashback (T&Cs apply)
    • Up to 12 months repayments in advance without penalties
    • Split loan available

  • Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.74 % p.a.
    Variable
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    5.65 % p.a.
    Initial monthly repayment
    $2,915
    Go to site
    • Built by CommBank
    • The first home loan with an increasing discount (conditions apply)
    • No application or banking fees

  • Fixed Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.74 % p.a.
    Fixed 2 years
    Comparison rate
    5.81 % p.a.
    Initial monthly repayment
    $2,915
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  • Variable Home Loan

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    Interest rate
    5.78 % p.a.
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    Initial monthly repayment
    $2,927
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  • Budget Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    • Cashback
    Interest rate
    5.79 % p.a.
    Variable
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    Initial monthly repayment
    $2,931
    Go to site
    • Get up to $4,000 cashback (T&Cs apply)
    • Split loan available

  • Variable Home Loan 90

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.79 % p.a.
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    Initial monthly repayment
    $2,931
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    • Owner occupier
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    Initial monthly repayment
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  • Flex Home Loan

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    • Principal & Interest
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    • Offset available
    • Redraw available
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    Initial monthly repayment
    $2,947
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  • Home Loan with Offset

    • Owner occupier
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  • Basic Variable Home Loan

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  • Offset Variable Home Loan

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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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