Queensland Rental Market Mid-Year Update – FY2025

Presented by ACJ Property | July 2025

As we enter the 2025–2026 financial year, Queensland's rental landscape continues to evolve under tight vacancy conditions, rising tenant expectations, and slowing—but still positive—rental growth. Here’s a summary of key insights and strategic takeaways for property owners looking to maximise returns and stay ahead.

1. Vacancy Rates: Still Critically Low

• According to the REIQ (Mar 2025 Quarter), Queensland’s statewide vacancy rate has dropped from 1.0% to 0.9%—well below the balanced market benchmark of 2.6–3.5%.

• 38 out of 50 Queensland regions now sit at or below 1.0% vacancy.

• Brisbane’s vacancy rate remains one of the lowest among capital cities, currently around 0.9% (REIQ).

Key Insight: Landlords are still operating in a high-demand, low-supply environment where pricing and tenant selection can be optimised.

2. Rental Growth: Steady, Not Surging

• According to Property Update & SQM Research:

  • House rents: ~$761/week (+3.4% YoY)

  • Unit rents: ~$600/week (+4.4% YoY)

• Nationally, rents are rising at a slower pace (~4–5% YoY), suggesting the sharp post-COVID rental inflation is easing.

Key Insight: The growth phase is normalising. Well-maintained and upgraded properties are still leasing faster and commanding stronger returns.

3. Demand Drivers: Migration + Affordability Tension

• Continued interstate migration, student return, and lifestyle moves are fuelling rental demand.

• However, affordability pressure is rising—some renters are downsizing or seeking shared accommodation.

• Tenant expectations are shifting: longer leases, energy-efficient homes, and lifestyle-driven location choices matter more than ever.

Key Insight: The market remains competitive, but tenant loyalty will increasingly depend on quality, responsiveness, and perceived value.

4. Strategic Moves for FY25–26

Market Trend	Recommended Action
Vacancy below 1%	Consider rent review or reduce lease-up incentives
Growth plateauing	Conduct mid-year performance reviews
Tenant cost sensitivity	Upgrade energy efficiency, include value-add amenities
Short-term letting gaining ground	Evaluate suitability for flexible/holiday letting models

ACJ can assist with tailored rent reviews, property positioning audits, and letting strategy assessments.

Need Support Planning the Year Ahead?

EOFY is not just for accountants—it’s a natural checkpoint for landlords to reassess, refocus, and reposition.

At ACJ Property, we work with owners to:

• Optimise rent and tenant retention

• Manage maintenance with ROI in mind

• Explore higher-yield alternatives like short-term letting where appropriate

Let’s talk strategy for your portfolio.

This July 2025 rental market update from ACJ Property breaks down Queensland’s latest vacancy trends, rent growth figures, and strategic advice for landlords heading into FY25–26. Designed to support informed decision-making, whether you're leasing long-term or exploring short-term options on the Gold Coast, Brisbane, or beyond.