Growth in asking rents has eased in Spring with Domain’s latest rental report showing all capital cities have passed their peak growth phases.

It says for the first time in nine months, quarterly rental growth for both houses and units has stalled across the combined capitals. Despite the slowdown in rental growth, tenants are still paying record-high asking rents in most capital cities. “All capital cities remain firmly a landlords’ market, with vacancy rates uniformly below 2%,” the report says. “Undoubtedly, affordability is a significant factor contributing to this slowdown and will likely continue to restrict further growth.”

The report says rental demand is easing, with the number of prospective tenants per rental listing on Domain falling to its lowest level since 2019, indicating a better balance between supply and demand.
“Demand-side pressures are diminishing as net overseas migration has decreased 19% since its March 2023 peak. “Additionally, affordability constraints are driving demographic shifts, prompting tenants to seek house shares or opt for intergenerational living to alleviate the financial strain.”

There’s no room at the inn in these suburbs which have Australia’s lowest vacancy rates. Data from Top Removals says Brisbane is Australia’s tightest rental market with just two vacancies per 100,000 people.