Investment11 min read
Brisbane's Rental Market in December 2025: Vacancy Rates, Median Rents, Yields, and What the Reforms Mean Now
PA
PropertyLens AI## The View from Both Sides of the Lease
Picture two people sitting at the same kitchen table in Annerley — one a tenant who's just received a rent increase notice, the other a landlord trying to work out whether the numbers still stack up after a recent insurance premium hike. Both are reading the same Brisbane rental market, but seeing completely different things.
That tension is the story of Brisbane's rental market right now. Vacancy rates remain historically tight, rents have climbed sharply over the past three years, and a series of legislative reforms has reshaped the rules for both sides. Whether you own a rental property or live in one, understanding the current landscape isn't optional — it's the difference between making good decisions and expensive ones.
Here's what the data and the legislation actually say.
## Vacancy Rates: Still Tight, Slowly Loosening
At the peak of Brisbane's rental squeeze in 2022–23, vacancy rates fell below 0.7% across much of inner Brisbane — effectively zero available stock. By December 2025, the picture has improved modestly. The broader Brisbane LGA sits at approximately 1.4% vacancy, while inner-ring suburbs remain tighter at around 1.0–1.2%.
For context, a balanced rental market — one where neither landlords nor tenants hold all the power — typically sits around 2.5–3.0%. Brisbane is still well below that threshold.
The slight easing has come from a combination of factors: new apartment completions in Newstead, Fortitude Valley, and South Brisbane have added supply; some interstate migration has slowed from its 2022 peak; and a handful of short-term rental properties have returned to the long-term market following changes to platform regulations. But the structural undersupply hasn't resolved. Detached houses in suburbs like Coorparoo, Nundah, and Wynnum still see multiple applications within days of listing.
**What this means for tenants**: You have slightly more choice than two years ago, particularly in the unit market. But don't expect bargaining power on price — vacancy is still too low for that.
**What this means for landlords**: Your property will rent. The question is whether you're pricing it correctly and managing it efficiently.
## Median Rents by Suburb: December 2025
Rents have risen substantially since 2020. Here's a realistic snapshot of where the market sits across key Brisbane suburbs as of late 2025:
### Houses (3-bedroom median weekly rent)
- **Paddington**: $820–$880
- **Annerley / Moorooka**: $650–$700
- **Coorparoo**: $720–$760
- **Nundah**: $680–$720
- **Wynnum / Manly**: $640–$680
- **Mitchelton**: $600–$640
- **Keperra / Stafford**: $570–$610
- **Carindale**: $640–$680
### Units (2-bedroom median weekly rent)
- **New Farm / Teneriffe**: $750–$820
- **South Brisbane / West End**: $640–$700
- **Newstead / Fortitude Valley**: $620–$680
- **Chermside**: $520–$560
- **Taringa / Toowong**: $560–$600
- **Morningside**: $540–$580
These figures represent advertised rents on new leases. Existing tenants on leases signed 18–24 months ago may still be paying 15–25% below these levels, which is one reason rent increase notices are generating so much friction right now.
## How to Calculate Net Rental Yield (and Why Gross Yield Misleads You)
Every property listing advertises gross rental yield. Almost none of them show you net yield — which is the number that actually matters.
**Gross yield** = (Annual rent ÷ Property value) × 100
A $750,000 house renting for $680 per week produces:
$680 × 52 = $35,360 annual rent
$35,360 ÷ $750,000 = **4.7% gross yield**
Looks reasonable. But here's what gross yield ignores:
**Net yield** = ((Annual rent − Annual expenses) ÷ Property value) × 100
Typical annual expenses on that same property:
- **Property management fees**: 8–10% of rent = $2,830–$3,540
- **Letting fee**: 1–2 weeks rent = $680–$1,360 (amortised annually)
- **Council rates**: $2,000–$2,800
- **Water rates**: $1,200–$1,600
- **Insurance (landlord + building)**: $2,500–$4,000
- **Maintenance and repairs**: $1,500–$3,000 (budget 0.5–1% of value)
- **Vacancy allowance** (2 weeks annually): $1,360
- **Accounting / tax**: $500–$800
**Total expenses**: approximately $12,570–$18,460
Net annual income: $35,360 − $15,500 (midpoint) = **$19,860**
Net yield: $19,860 ÷ $750,000 = **2.6%**
That's the real number. It's not bad — particularly when you factor in capital growth — but it's a long way from the headline 4.7%. Investors who don't run this calculation properly end up surprised by cash flow shortfalls.
For units with body corporate fees, add another $3,000–$8,000 per year to expenses, which compresses net yields further. A $550,000 unit in Newstead yielding 5.8% gross might net 3.2–3.5% after all costs.
## Property Management Costs: What You're Actually Paying For
Brisbane property management fees typically range from 7.5% to 10% of collected rent, plus a letting fee of one to two weeks' rent when a new tenancy begins. Some agencies charge additional fees for lease renewals ($150–$300), routine inspections ($60–$120 each), and tribunal representation.
On a $700 per week rental, a 9% management fee costs $3,276 per year — before letting fees and extras. That's not cheap. But a good property manager earns their fee through tenant screening, lease compliance, maintenance coordination, and keeping your vacancy periods short.
The question isn't whether to use a property manager — for most investors, the answer is yes. The question is whether yours is actually doing the job. Signs of a poor manager include slow responses to maintenance requests (which creates tenant friction and legal exposure), infrequent inspections, and poor documentation of property condition.
With the rental reforms now fully embedded, the compliance burden on landlords has increased. A property manager who understands the current legislation is worth more than one who doesn't.
## QLD Rental Reforms: What's Changed and What It Means
Queensland has implemented some of the most significant rental law reforms in the country over the past two years. By December 2025, the key changes are fully in effect. Here's what both sides need to know:
### For Tenants
**Pets**: Landlords can no longer unreasonably refuse a tenant's request to keep a pet. Refusals must be based on specific grounds (property type, strata by-laws, etc.) and must be in writing with reasons. If you've been told no to a pet without explanation, you have grounds to challenge it.
**Minimum housing standards**: All rental properties must now meet minimum standards covering weatherproofing, locks, functioning kitchen and bathroom facilities, and vermin-proofing. If your property doesn't meet these standards, you can request repairs — and if the landlord fails to act, you have escalation pathways through the RTA.
**Rent increases**: Rent can only be increased once every 12 months. The notice period is two months. There is no cap on the amount of the increase, but tenants can challenge excessive increases through the Queensland Civil and Administrative Tribunal (QCAT) if they believe the increase is beyond market rates.
**Bond**: The bond cap remains at four weeks' rent for most properties. Bond claims must be itemised and supported by entry and exit condition reports.
**Ending a tenancy**: The reforms have significantly restricted no-grounds evictions. Landlords can only end a periodic tenancy for specific reasons — selling the property, moving in themselves, major renovations, or other prescribed grounds. This is a substantial change from the previous regime.
### For Landlords
The restriction on no-grounds evictions is the most consequential change. If you have a problem tenant on a periodic lease, you now need documented grounds to end the tenancy. This makes proper tenant screening at the start of a tenancy more important than ever — it's much harder to exit a bad tenancy than to avoid it.
The minimum housing standards create a compliance obligation. If your property has deferred maintenance — a leaky roof, broken locks, inadequate ventilation — you're now exposed to formal complaints and potential QCAT orders. Proactive maintenance isn't just good practice; it's a legal requirement.
The pet provisions mean you need a clear, written policy and legitimate grounds if you're going to refuse. Blanket no-pet clauses are no longer enforceable.
**Documentation is everything under the new regime.** Entry condition reports, routine inspection records, maintenance requests and responses — all of it needs to be thorough and timestamped. If a dispute goes to QCAT, the landlord or agent with better records almost always wins.
## The Rental Yield vs Capital Growth Trade-Off
One of the most common mistakes Brisbane investors make is optimising purely for yield — buying in outer suburbs for 5–6% gross returns — without considering that capital growth in those areas has historically been weaker.
Inner Brisbane suburbs (within 7–10km of the CBD) typically produce gross yields of 3.5–4.5% on houses, but have delivered 8–12% annualised capital growth over the past decade in many pockets. Outer suburbs might yield 5–6% gross but grow at 4–6% annually.
The maths over a 10-year hold often favours the inner-ring property, even at lower yield, because the capital base is growing faster. But this depends entirely on your cash flow position — if you can't service the loan comfortably on a lower-yield property, the capital growth is theoretical until you sell.
The honest answer is that the right property depends on your individual tax position, borrowing capacity, and investment horizon. A negatively geared inner-Brisbane property makes sense for a high-income earner in the 45% tax bracket. It makes much less sense for someone on a median income with limited cash reserves.
## What Tenants Should Actually Know About Their Rights
Beyond the legislative reforms, there are practical rights many Brisbane tenants don't exercise:
- **Urgent repairs**: If something essential breaks (hot water, heating, a structural issue), you can arrange repairs up to $300 and claim the cost from the landlord if they don't respond within 24 hours. Keep all receipts and written communication.
- **Condition reports**: You have three business days after moving in to complete and return the entry condition report. Take photos of everything. This document is your protection against unfair bond claims when you leave.
- **RTA dispute resolution**: Before going to QCAT, the Residential Tenancies Authority offers free dispute resolution. Most bond disputes and many maintenance disputes can be resolved here without the cost and delay of tribunal proceedings.
- **Rent increases**: If you receive a rent increase notice you believe is above market, get comparable rental data for your suburb and present it in writing. Landlords can negotiate. If they won't, you can apply to QCAT — though in practice, most tenants don't, which is why the provision is underused.
The RTA's website (rta.qld.gov.au) has plain-English guides to every aspect of tenancy law. It's worth an hour of your time.
## The Outlook for 2026
Brisbane's rental market is unlikely to soften dramatically in 2026. The pipeline of new apartments completing in inner-ring suburbs will add some supply, but population growth — driven by interstate migration, international students returning to full capacity, and continued overseas arrivals — continues to absorb new stock quickly.
The most likely scenario is a gradual drift toward 2% vacancy over the next 18 months, with rental growth moderating from the 8–12% annual increases seen in 2022–23 to something closer to 4–6%. That's still above wage growth for most tenants, which means affordability pressure continues.
For landlords, the combination of stable rents, rising insurance costs, and increased compliance obligations means net yields will remain under pressure. The investors who do well will be those managing costs tightly, maintaining properties proactively, and holding assets in suburbs with genuine long-term demand drivers — proximity to employment, universities, hospitals, and transport.
## Running the Numbers Before You Act
Whether you're a tenant deciding whether to accept a rent increase or move on, or a landlord trying to work out whether your property is still performing, the starting point is always the same: get accurate, suburb-level data.
PropertyLens tracks rental vacancy rates, median rents, and yield calculations across Brisbane suburbs, and its Deep Research Reports pull together comparable rental data, suburb trend analysis, and planning information for specific properties. If you're trying to work out whether a rent increase is justified, or whether a property you're considering buying will actually deliver the yield the listing claims, that kind of suburb-specific data is where you start.
The Brisbane rental market rewards people who understand it. Both sides of the lease.
Picture two people sitting at the same kitchen table in Annerley — one a tenant who's just received a rent increase notice, the other a landlord trying to work out whether the numbers still stack up after a recent insurance premium hike. Both are reading the same Brisbane rental market, but seeing completely different things.
That tension is the story of Brisbane's rental market right now. Vacancy rates remain historically tight, rents have climbed sharply over the past three years, and a series of legislative reforms has reshaped the rules for both sides. Whether you own a rental property or live in one, understanding the current landscape isn't optional — it's the difference between making good decisions and expensive ones.
Here's what the data and the legislation actually say.
## Vacancy Rates: Still Tight, Slowly Loosening
At the peak of Brisbane's rental squeeze in 2022–23, vacancy rates fell below 0.7% across much of inner Brisbane — effectively zero available stock. By December 2025, the picture has improved modestly. The broader Brisbane LGA sits at approximately 1.4% vacancy, while inner-ring suburbs remain tighter at around 1.0–1.2%.
For context, a balanced rental market — one where neither landlords nor tenants hold all the power — typically sits around 2.5–3.0%. Brisbane is still well below that threshold.
The slight easing has come from a combination of factors: new apartment completions in Newstead, Fortitude Valley, and South Brisbane have added supply; some interstate migration has slowed from its 2022 peak; and a handful of short-term rental properties have returned to the long-term market following changes to platform regulations. But the structural undersupply hasn't resolved. Detached houses in suburbs like Coorparoo, Nundah, and Wynnum still see multiple applications within days of listing.
**What this means for tenants**: You have slightly more choice than two years ago, particularly in the unit market. But don't expect bargaining power on price — vacancy is still too low for that.
**What this means for landlords**: Your property will rent. The question is whether you're pricing it correctly and managing it efficiently.
## Median Rents by Suburb: December 2025
Rents have risen substantially since 2020. Here's a realistic snapshot of where the market sits across key Brisbane suburbs as of late 2025:
### Houses (3-bedroom median weekly rent)
- **Paddington**: $820–$880
- **Annerley / Moorooka**: $650–$700
- **Coorparoo**: $720–$760
- **Nundah**: $680–$720
- **Wynnum / Manly**: $640–$680
- **Mitchelton**: $600–$640
- **Keperra / Stafford**: $570–$610
- **Carindale**: $640–$680
### Units (2-bedroom median weekly rent)
- **New Farm / Teneriffe**: $750–$820
- **South Brisbane / West End**: $640–$700
- **Newstead / Fortitude Valley**: $620–$680
- **Chermside**: $520–$560
- **Taringa / Toowong**: $560–$600
- **Morningside**: $540–$580
These figures represent advertised rents on new leases. Existing tenants on leases signed 18–24 months ago may still be paying 15–25% below these levels, which is one reason rent increase notices are generating so much friction right now.
## How to Calculate Net Rental Yield (and Why Gross Yield Misleads You)
Every property listing advertises gross rental yield. Almost none of them show you net yield — which is the number that actually matters.
**Gross yield** = (Annual rent ÷ Property value) × 100
A $750,000 house renting for $680 per week produces:
$680 × 52 = $35,360 annual rent
$35,360 ÷ $750,000 = **4.7% gross yield**
Looks reasonable. But here's what gross yield ignores:
**Net yield** = ((Annual rent − Annual expenses) ÷ Property value) × 100
Typical annual expenses on that same property:
- **Property management fees**: 8–10% of rent = $2,830–$3,540
- **Letting fee**: 1–2 weeks rent = $680–$1,360 (amortised annually)
- **Council rates**: $2,000–$2,800
- **Water rates**: $1,200–$1,600
- **Insurance (landlord + building)**: $2,500–$4,000
- **Maintenance and repairs**: $1,500–$3,000 (budget 0.5–1% of value)
- **Vacancy allowance** (2 weeks annually): $1,360
- **Accounting / tax**: $500–$800
**Total expenses**: approximately $12,570–$18,460
Net annual income: $35,360 − $15,500 (midpoint) = **$19,860**
Net yield: $19,860 ÷ $750,000 = **2.6%**
That's the real number. It's not bad — particularly when you factor in capital growth — but it's a long way from the headline 4.7%. Investors who don't run this calculation properly end up surprised by cash flow shortfalls.
For units with body corporate fees, add another $3,000–$8,000 per year to expenses, which compresses net yields further. A $550,000 unit in Newstead yielding 5.8% gross might net 3.2–3.5% after all costs.
## Property Management Costs: What You're Actually Paying For
Brisbane property management fees typically range from 7.5% to 10% of collected rent, plus a letting fee of one to two weeks' rent when a new tenancy begins. Some agencies charge additional fees for lease renewals ($150–$300), routine inspections ($60–$120 each), and tribunal representation.
On a $700 per week rental, a 9% management fee costs $3,276 per year — before letting fees and extras. That's not cheap. But a good property manager earns their fee through tenant screening, lease compliance, maintenance coordination, and keeping your vacancy periods short.
The question isn't whether to use a property manager — for most investors, the answer is yes. The question is whether yours is actually doing the job. Signs of a poor manager include slow responses to maintenance requests (which creates tenant friction and legal exposure), infrequent inspections, and poor documentation of property condition.
With the rental reforms now fully embedded, the compliance burden on landlords has increased. A property manager who understands the current legislation is worth more than one who doesn't.
## QLD Rental Reforms: What's Changed and What It Means
Queensland has implemented some of the most significant rental law reforms in the country over the past two years. By December 2025, the key changes are fully in effect. Here's what both sides need to know:
### For Tenants
**Pets**: Landlords can no longer unreasonably refuse a tenant's request to keep a pet. Refusals must be based on specific grounds (property type, strata by-laws, etc.) and must be in writing with reasons. If you've been told no to a pet without explanation, you have grounds to challenge it.
**Minimum housing standards**: All rental properties must now meet minimum standards covering weatherproofing, locks, functioning kitchen and bathroom facilities, and vermin-proofing. If your property doesn't meet these standards, you can request repairs — and if the landlord fails to act, you have escalation pathways through the RTA.
**Rent increases**: Rent can only be increased once every 12 months. The notice period is two months. There is no cap on the amount of the increase, but tenants can challenge excessive increases through the Queensland Civil and Administrative Tribunal (QCAT) if they believe the increase is beyond market rates.
**Bond**: The bond cap remains at four weeks' rent for most properties. Bond claims must be itemised and supported by entry and exit condition reports.
**Ending a tenancy**: The reforms have significantly restricted no-grounds evictions. Landlords can only end a periodic tenancy for specific reasons — selling the property, moving in themselves, major renovations, or other prescribed grounds. This is a substantial change from the previous regime.
### For Landlords
The restriction on no-grounds evictions is the most consequential change. If you have a problem tenant on a periodic lease, you now need documented grounds to end the tenancy. This makes proper tenant screening at the start of a tenancy more important than ever — it's much harder to exit a bad tenancy than to avoid it.
The minimum housing standards create a compliance obligation. If your property has deferred maintenance — a leaky roof, broken locks, inadequate ventilation — you're now exposed to formal complaints and potential QCAT orders. Proactive maintenance isn't just good practice; it's a legal requirement.
The pet provisions mean you need a clear, written policy and legitimate grounds if you're going to refuse. Blanket no-pet clauses are no longer enforceable.
**Documentation is everything under the new regime.** Entry condition reports, routine inspection records, maintenance requests and responses — all of it needs to be thorough and timestamped. If a dispute goes to QCAT, the landlord or agent with better records almost always wins.
## The Rental Yield vs Capital Growth Trade-Off
One of the most common mistakes Brisbane investors make is optimising purely for yield — buying in outer suburbs for 5–6% gross returns — without considering that capital growth in those areas has historically been weaker.
Inner Brisbane suburbs (within 7–10km of the CBD) typically produce gross yields of 3.5–4.5% on houses, but have delivered 8–12% annualised capital growth over the past decade in many pockets. Outer suburbs might yield 5–6% gross but grow at 4–6% annually.
The maths over a 10-year hold often favours the inner-ring property, even at lower yield, because the capital base is growing faster. But this depends entirely on your cash flow position — if you can't service the loan comfortably on a lower-yield property, the capital growth is theoretical until you sell.
The honest answer is that the right property depends on your individual tax position, borrowing capacity, and investment horizon. A negatively geared inner-Brisbane property makes sense for a high-income earner in the 45% tax bracket. It makes much less sense for someone on a median income with limited cash reserves.
## What Tenants Should Actually Know About Their Rights
Beyond the legislative reforms, there are practical rights many Brisbane tenants don't exercise:
- **Urgent repairs**: If something essential breaks (hot water, heating, a structural issue), you can arrange repairs up to $300 and claim the cost from the landlord if they don't respond within 24 hours. Keep all receipts and written communication.
- **Condition reports**: You have three business days after moving in to complete and return the entry condition report. Take photos of everything. This document is your protection against unfair bond claims when you leave.
- **RTA dispute resolution**: Before going to QCAT, the Residential Tenancies Authority offers free dispute resolution. Most bond disputes and many maintenance disputes can be resolved here without the cost and delay of tribunal proceedings.
- **Rent increases**: If you receive a rent increase notice you believe is above market, get comparable rental data for your suburb and present it in writing. Landlords can negotiate. If they won't, you can apply to QCAT — though in practice, most tenants don't, which is why the provision is underused.
The RTA's website (rta.qld.gov.au) has plain-English guides to every aspect of tenancy law. It's worth an hour of your time.
## The Outlook for 2026
Brisbane's rental market is unlikely to soften dramatically in 2026. The pipeline of new apartments completing in inner-ring suburbs will add some supply, but population growth — driven by interstate migration, international students returning to full capacity, and continued overseas arrivals — continues to absorb new stock quickly.
The most likely scenario is a gradual drift toward 2% vacancy over the next 18 months, with rental growth moderating from the 8–12% annual increases seen in 2022–23 to something closer to 4–6%. That's still above wage growth for most tenants, which means affordability pressure continues.
For landlords, the combination of stable rents, rising insurance costs, and increased compliance obligations means net yields will remain under pressure. The investors who do well will be those managing costs tightly, maintaining properties proactively, and holding assets in suburbs with genuine long-term demand drivers — proximity to employment, universities, hospitals, and transport.
## Running the Numbers Before You Act
Whether you're a tenant deciding whether to accept a rent increase or move on, or a landlord trying to work out whether your property is still performing, the starting point is always the same: get accurate, suburb-level data.
PropertyLens tracks rental vacancy rates, median rents, and yield calculations across Brisbane suburbs, and its Deep Research Reports pull together comparable rental data, suburb trend analysis, and planning information for specific properties. If you're trying to work out whether a rent increase is justified, or whether a property you're considering buying will actually deliver the yield the listing claims, that kind of suburb-specific data is where you start.
The Brisbane rental market rewards people who understand it. Both sides of the lease.