Most Popular Regions
The number of people moving from Australia’s capital cities to regional centres continues to grow.
The latest Regional Movers Index shows a 2.5% increase in people moving to the regions in the September 2025 quarter.
Overall, internal migration from capital cities to the regions remains elevated and is at higher levels than in the opposite direction.
During the quarter, capital city to region migration accounted for 11.5% of all major relocations, compared with 8.4% in the other direction Sydney and Melbourne lost the highest number of residents to the regions.
While losses from the smaller capital cities are lower, the report says levels are increasing.
“Compared with a year earlier: Brisbane increased its share from 1% to 2%, Adelaide rose from 2% to 6%, Perth shifted from receiving net inflows to recording a net outflow, now accounting for 3% of the total,” the report says.
The Sunshine Coast (Qld) remains the region attracting the most new residents, followed by Greater Geelong (Vic), Lake Macquarie (NSW), the Fraser Coast (Qld) and Moorabool (Vic).
Rents Hit New High
Australia’s median rent has hit a new high, increasing by 1.6% in the December quarter to reach $650 per week.
The latest increase, according to realestate.com.au data, means median rents are up by 4.8% over the past 12 months which equates to tenants paying an additional $1560 a year.
Capital city median rents are $650 per week, and regional median rents are $590 per week (up 7.3% in the past 12 months).
REA Group senior economist Anne Flaherty says rent growth, although at a slower rate, is set to continue this year.
“We are likely to see rents hit new record highs in 2026,” she says.
“Nationally, unit rents are up 6.7% over the year compared with 3.2% for houses.
That reflects where demand is strongest, particularly in inner-city and inner-fringe locations where apartments are often the most affordable option.”
Sydney’s median rent is now $760 per week, Perth is $700, Brisbane is $670, Darwin is $650, Melbourne is $575 and Hobart is $573.
Vacancy Rates Ease – But Remain Tight
National vacancy rates have eased slightly but still remain very tight.
New data from SQM Research shows the national vacancy rate increased to 1.4% in December 2025, up from 1.3% in November.
This equates to about 43,850 dwellings being vacant, according to SQM Research managing director Louis Christopher.
He says the increase reflects a typical seasonal lift in available rental stock.
“Despite the increase, vacancy rates remain below long-term averages, indicating that rental market conditions continue to favour landlords in most capital cities,” he says.
“Sydney and Brisbane continue to see strong tenant demand, while Hobart remains at near record-low vacancy levels.
Rents are still rising in most capitals, particularly for houses, despite a slight easing in rental growth rates compared to last year.”
Melbourne has the highest vacancy rate of 2%, followed by Canberra, 1.9%, Sydney, 1.8%, Brisbane, 1.2%, Darwin, 1%, Adelaide, 0.9% and Perth, 0.7%.
Hobart had the tightest rental market with a vacancy rate of just 0.4%.
Investors Borrowing More
Investor lending has hit a new peak, with more than 205,000 new investor loans issued in the past 12 months.
Analysis by Money.com.au shows a 9% year on year increase in investor loans, with Victoria leading the charge with a 12.9% increase over the year.
Investor loans were also up by 10.5% in New South Wales, 10% in South Australia and 8% in Queensland.
Investors are seeking out existing properties with the data showing that nationally investor loans for established dwellings are up by 13.2%, compared with 2.7% for owner-occupiers.
The average investor loan size has also increased in every state. Nationally, the average investor loan is $677,000. It is much higher in New South Wales at $845,000, while the lowest is $422,000 in the Northern Territory.
Money.com.au property expert Debbie Hays says at the same time owner-occupier lending has been more muted.
The Northern Territory (14%) and Tasmania (11%) had the biggest increase in owner-occupier loans.
Foreign Investment Facts
Only 40,000 of the estimated 11 million residential dwellings in Australia are owned by foreign investors.
Data from the Register of Foreign Ownership of Australian Assets for residential land tracks homes bought from 2016 to 2024, that are still owned by international interests.
Victoria accounts for 40% of those properties (16,929), followed by New South Wales with 8862 properties, Queensland with 8129 and South Australia with 2129.
The majority of properties bought by foreign buyers are new builds, although there are about 8000 established properties that were purchased.
From April 1 2025, the Federal Government introduced a 2-year ban on foreign investment in established property in an effort to improve housing affordability and accessibility for local buyers.
ATO data shows mainland China investors are the largest group of foreign owners in Australia, followed by residents of Hong Kong, Singapore, Malaysia, Vietnam and the United Kingdom.
Its data shows 31,888 of the purchases were for less than $1 million.
