More than half of rental applicants feel pressured to offer above the asking price to secure a home, highlighting the strength of Australia’s rental market.

For residential property investors, tight vacancy rates and rising rents present strong opportunities for returns.

The Real Property Report 2025 reveals that finding a rental remains highly competitive, with 57% of tenants feeling they must offer higher rent.

Some are paying up to $124 extra per week, adding up to more than $6,000 per year, just to secure a property.

Many renters are going to extreme lengths, with a significant portion applying for multiple properties at once, paying additional rent upfront, or even offering months of rent in advance. Once they move in, some tenants admit to hiding pet ownership to avoid restrictions.

According to SQM Research, the national vacancy rate fell to just 1% in January, with Brisbane at 0.8%, Perth at 0.4%, and Adelaide at 0.5%, making them the most competitive rental markets.

Rent prices continue to climb, with a 1.6% increase in January alone, while CoreLogic reports a 4.1% rise in the 12 months to February.

For property investors, record-low vacancy rates and rising demand make now an ideal time to invest in rental properties.

With supply remaining tight and competition increasing, rental yields and long-term growth prospects are looking strong in key markets.