Queensland’s tight rental market has eased slightly but experts warn the reprieve may be short lived, with rental listings showing steep hikes are already being priced in.
New data from realestate.com.au shows Brisbane’s vacancy rate rose to 1 per cent in July, up 0.3 percentage points over the month and 0.2 points higher than a year earlier.
But the River City still remains one of the tightest rental markets in the country, only slightly higher than Hobart and Darwin, which both have a vacancy rate of 0.9 per cent.
Brisbane’s vacancy rate has lifted but it is still tight.
By comparison, Canberra sits at 1.9 percent, Melbourne at 1.8 per cent, Sydney at 1.7 per cent, Adelaide at 1.2 per cent and Perth at 1.1 per cent.
Vacanacy rates also lifted in regional Queensland, up 0.2 percentage points in July to 1.4 per cent, the same as regional NSW and Tasmania.
Victoria has the highest vacancy rate for the regions at 1.9 per cent, followed by Western Australia (1.7%), and the Northern Territory (1.5%).
Regional South Australia sits at 1.2 per cent.
Nationally, the vacancy rate lifted to 1.5 per cent in July, the highest level since February 2022.
Capital cities and regional areas both recorded vacancy rates of 1.5 per cent.
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Realestate.com.au senior economist Anne Flaherty said renters were seeing a modest improvement in choice, though supply remained well below what would be considered a balanced market.
“Choice for renters improved in July, with the volume of available rentals up in every capital city and regional area compared to three months ago,” Ms Flaherty said.
“While vacancy rates have increased, they remain well below the 2.5-3.5 per cent level considered to be a balanced market.”
Proptrack senior economist Anne Flaherty
But Ms Flaherty said Brisbane remained in a cluster of smaller capitals where rental supply was especially limited.
“Vacancy rates remain particularly tight in many of Australia’s smaller capitals, with the lowest levels of rental supply recorded in Hobart, Darwin, Brisbane, and Perth,” she said.
Ms Flaherty said stronger investor activity had likely helped lift rental supply this year, although that improvement may not last.
“In the 12 months to June 2026 the number of new loans to investors was tracking at the highest level seen since the Australian Bureau of Statistics (ABS) began reporting this data in 2019,” she said.
“That surge in investors is likely behind the recovery in vacancy rates this year.
“However, this trend is now likely to reverse following the reduction in tax concessions for investors as part of the May Budget.
“This is expected to lead to a slowdown in the rate at which new rental supply is added moving forwards.”
The report comes after the Federal government announced significant reforms to property investor tax settings during the May budget.
Now, the only way to access negative gearing is to build a new residence, while the 50 per cent discount for capital gains tax is also now tied to boosting housing supply.
Modelling suggested that rents would only increase by $2 a week as a result of the reforms, but the reality has been much more punishing, with some landlords increasing rent by $100 a week.
This Peregian Springs house is currently listed for $1000 a week, but that will increase to $1100 in June next year
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This Mount Gravatt East house is listed for $685 a week but that will increase to $780 a week in March next year
The realestate.com.au vacancy report comes after the Real Estate Institute of Queensland (REIQ) released its June quarterly vacancy report at the end of July.
It described Queensland’s rental market as in a “state of flux” after more than half of the state’s regions recorded an increase in vacancies, including some areas where vacancy rates had reached their highest rates since the Covid-19 pandemic.
This Tingalpa house is listed for $770 a week, but that will increase to $860 a week in February
But it too revealed that the statewide vacancy rate had only reached 1 per cent, well below the healthy range.
“Despite these improvements, the stark reality is rental availability remains constrained across much of Queensland with 29 regions reporting measly vacancy rates of one per cent or less, and only six regions recording vacancy rates above two per cent,” the report said.
The Bay Islands region, which includes Russell Island, Macleay Island, Lamb Island, and Karragarra Island, and the Isaac region, recorded vacancy rates of 4.3 per cent and 6.2 per cent respectively.
RELATED: Queensland rental vacancies rise in half of regions but crisis remains
