“As the year winds down, you often see an uptick in available rental properties,” she explained.

This trend aligns with the academic and hiring calendars of universities and recent graduates. Additionally, landlords seem to favor the holiday season for listing properties, as it provides them with extra time to handle maintenance and inspections.

“While tenants will have more options to choose from, they should also be prepared for increased competition during this busy period,” she noted.

“Tenants are going to find there is more choice, but more tenants are looking for rentals at this period of time as well.”

“Most capital cities have high unit rents as well.”

Weekly rents remain high

Across the combined capitals, the average weekly rent for houses and units sits at $650.

Sydney remains the most expensive city for units, averaging $750 a week, while Hobart is the cheapest at $490, according to Domain’s September 2025 Rental Report. Source: SBS News

Powell said the government’s new first-home buyers’ scheme could reduce pressure on the rental market — but not immediately.

“Over time, we should see more tenants transitioning to being homeowners. That’s the aim of this policy.”

Sydney has the highest average house rent at $780 per week, while Hobart and Melbourne have the lowest average house rents at $580 per week, according to Domain’s September 2025 Rental Report. Source: SBS News

Negotiating your rent in a tight market

Tenants, on the other hand, can negotiate before signing a lease renewal or accepting a rent increase.

“They can ask for a lower rent, get more information, or suggest terms based on what’s fair in the current market or their personal situation,” Pilkington said.

Subletting on the rise — and the risks

Some leases prohibit subletting altogether, while others allow it with specific conditions.

“When putting the agreement in writing, it should clearly address: rent or contribution to utilities, access to shared spaces, length of stay, notice periods, responsibilities for cleaning, guests, noise and property maintenance and what happens if something is damaged or lost,” Pilkington said.

What does this mean for 2026?

“After rising on average around 9 per cent between December and March, the rolling 3-month count of new rental listings typically eases into a quieter winter period, declining on average by 8.5 per cent between March and June.”