October has unfolded as a telling month in Sydney’s rental market—one that reinforces some longstanding trends while throwing up a few new flags for both landlords and tenants. At RnJ Realty, managing properties right across Greater Sydney gives us a front-row seat. Here’s what we’re seeing in October 2025, and how you should be thinking about it as a property owner, investor or tenant.
1. Rents remain elevated
– The median asking weekly rent for houses in Sydney has risen to approx. $1,104 for “all houses” as of late October, up about 5.9% year-on-year.
– For units, the same data shows median weekly rent at ≈ $723, up about 4.3% year-on-year.
– Nationally, median weekly rents across capital cities topped $700 for the first time: Australia-wide combined capital cities sat at ~$702 pw in September, per data from the quarter.
What this means for you: If you’re a landlord, these numbers reinforce the strong baseline for rents. If you’re a tenant, it means the bar is high and competition remains fierce.
2. Vacancy rates are tighter than ever
– National vacancy rates fell to about 1.47% in September, less than half the pre-COVID decade average (~3.3%).
– Specifically in Sydney, recent data shows vacancy rates for units at ~1.35%, and for all dwellings around ~1.64%.
– Listings are tracking ~25% below the five-year average for this time of year.
Implications: For property managers and owners, this tight supply environment means properties need to be market-ready and efficiently managed to capitalise. For tenants, this means less negotiating power and more urgency when a suitable property appears.
3. Sub-market splits are widening
– The rental ‘divide’ within Sydney is growing: premium suburbs (for example harbourside or eastern suburbs) are pushing rents significantly higher than outer suburbs.
– While some outer-suburb areas are seeing incremental growth, the pace is slower and affordability pressures remain.
Insight for RnJ Realty clients: It’s more important than ever to segment your strategy by suburb. A “one-size-fits-all” rental rate may leave value on the table or end up with longer vacancy periods in certain pockets.
4. What we observed at RnJ Realty this month
From our property-management operations across Greater Sydney we noted:
– More inspection activity earlier in the week than mid-week—tenants appear to be scheduling sooner rather than later.
– Increased landlord enquiries about pro-active maintenance: in a tight market, keeping a property in top condition matters more than ever.
– A stronger appetite for leases that start immediately (within days of listing) rather than the traditional 4-6 weeks lead time.
These operational observations align with broader market data, but they also underscore why an experienced manager matters in this environment.
5. Outlook & practical takeaways for end-of-year
– With the supply shortage persisting, we don’t expect a meaningful drop in rents in the short term—but slower rate growth is feasible.
– Property owners should review: Are your properties showing at their best? Is the listing timing optimal? Are rents aligned with current demand?
– Tenants should factor in higher standards when listing for inspection: presentation, responsiveness and readiness matter.
– Investors: don’t assume “any suburb will do”. The stronger sub-markets will outperform, not just in rent level but sustainable occupancy.
Conclusion
October 2025 has reinforced two things: the Sydney rental market is as competitive as ever, and the margin for error is smaller. That’s why choosing a property-management partner like RnJ Realty matters—you need someone who’s tuned into data and the operational realities of the market.
For landlords, our message is clear: stay proactive, stay ready and don’t rely solely on past performance. For tenants, it means prepare early, act decisively, and recognise the value in properties that are well-managed.
If you’d like to discuss how these trends affect your property (whether you’re leasing out or looking to lease in), get in touch with us at RnJ Realty—we’re here to add clarity to the chaos.
Ready to take the next step? Contact our team to discuss how we can optimise your property for the end-of-year rush.
Note: Data referenced is based on publicly-available rental market indices (SQM Research, Cotality) and internal observations as of October 2025. Always consider your individual property’s condition and location when interpreting these figures.
