While the return of overseas workers and international students has put pressure on capital city rental markets, some regional markets are easing.

SQM Research data shows vacancies increased in areas such as Wollongong and the Central Coast in July.

Despite the easing in those locations, the national vacancy rate remained steady at 1% in July.

Managing director Louis Christopher says rents in capital cities are also on the rise, up by 1.2% over the 30 days to August 12, resulting in a 17.4% increase in the past 12 months.

Rents for houses in capital cities increased 15.1% over the same period while unit rents were up by 16.2%.

But average rents decreased slightly in Hobart, Darwin and Canberra in the past month, he says.

“The rental market by and large remains very tight,” Christopher says. “We have evidence that the rise in overseas arrivals is starting to put some additional demand pressure in certain pockets of the rental market.”