Rising rents mean that real estate investors are achieving gross yields of up to 7% in some locations.

Chris Foster-Ramsay, principal of Foster Ramsay Finance, says high rents and low vacancies are boosting gross yields and net returns for investors.

The situation is expected to continue with no relief in the rental market in sight.

SQM Research figures put national vacancy rates at a record low of 0.9% and listings across combined capital cities about 35% below the previous five-year average.

According to SQM, the total number of rental vacancies Australia-wide is about 33,813 residential properties.

It says over the 30 days to 12 October, capital city asking rents rose by 1.4%.

Strong overseas migration expected within the next year is expected to put further pressure on the rental market.

With the permanent migration cap lifted from 160,000 to 195,000 for the next 12 months, more than 2 million applications have already been processed for prospective immigrants since June.