On the Sunshine Coast, and particularly in Caloundra, rental demand remains strong. Vacancy rates are exceptionally low, hovering around 0.5–1% for houses and units, keeping competition high among tenants. Popular coastal suburbs such as Kings Beach, Golden Beach and Currimundi are seeing rising rents, reflecting ongoing lifestyle demand, population growth, and limited housing supply. For landlords, this has sustained gross rental yields locally, while for tenants, affordability pressures are increasingly a challenge—mirroring the national trend highlighted in the September Cotality Housing Value Index.
The September 2025 Cotality Housing Value Index highlights ongoing challenges and opportunities in Australia’s rental market. For landlords, conditions remain shaped by strong demand, low vacancy rates and modest growth in dwelling values, with dynamics differing across the capital cities and regional areas.
Nationally, dwelling values lifted slightly over the 30 days to 31 August, with capital cities generally outperforming regional markets. For landlords, this has two implications. First, the underlying value of investment properties continues to trend higher in most urban centres, reinforcing long-term capital growth. Second, rental demand is persisting at elevated levels due to population growth, migration inflows and constrained housing supply.
Vacancy rates remain critically low in every capital city. Brisbane, Adelaide and Perth are particularly tight, with tenants competing for limited stock. This is driving rental increases, though the rate of growth has moderated compared with the peaks of 2023 and 2024. For landlords, this environment has sustained gross rental yields, with returns improving slightly as rental income has risen faster than dwelling values in several markets.
The report shows that Brisbane and Perth stand out for landlords, where yields have lifted due to rapid rental growth and ongoing affordability relative to Sydney and Melbourne. Adelaide, too, continues to perform solidly. Sydney and Melbourne present a more complex picture. While demand is strong, stretched affordability is constraining how much tenants can reasonably pay, placing a natural cap on rent increases. Hobart andDarwin remain subdued, with weaker demand growth and less competitive rental markets.
While rising rents provide improved income streams, the Index makes clear that affordability pressures are severe for tenants. Median rents in most capitals now account for a larger share of household income than the long-term average. For landlords, this is a reminder that sustainable rental growth depends on maintaining affordability and ensuring tenants are not priced out. Policy measures around rental assistance and housing supply will likely influence conditions over the coming year.
From an investment perspective, landlords are balancing stronger rental yields against higher borrowing costs. Mortgage repayments remain elevated following interest rate rises in recent years. This is limiting new investor entry, even as existing landlords benefit from improved yields. For those holding property, rental income is providing a crucial offset, though many landlords are cautious about further rate movements.
Looking ahead, the divergence between markets is expected to remain. Sydney and Melbourne are likely to see steady but constrained rental growth, while Brisbane, Perth and Adelaide offer stronger yield prospects. Regional markets, having experienced extraordinary demand through the pandemic years, are levelling out as affordability challenges weigh on tenants and new supply gradually returns.
For landlords, the September data underscores the resilience of rental demand but also highlights the importance of balancing financial returns with tenant capacity. Rental markets are likely to remain competitive, but affordability limits will play a greater role in shaping outcomes through the rest of 2025.
Gross rental yields nationally
| Sydney | 3.0% |
| Melbourne | 3.7% |
| Brisbane | 3.6% |
| Adelaide | 3.7% |
| Perth | 4.2% |
| Hobart | 4.4% |
| Darwin | 6.5% |
| Canberra | 4.1% |
| National | 3.7% |