Sydney Vacancy Still Ultra-Tight (1.5% in July) As Rent-Bidding ‘Loophole’ Lives On

Sydney’s rental vacancy rate held at 1.5% in July 2025 – the latest available data – keeping competition intense for would-be tenants.

NSW banned solicited rent bidding and mandated fixed-price advertising from late 2022, later extending the “no soliciting” rule to landlords and third-party platforms. But a crucial carve-out remains: renters can still voluntarily offer above the listed price – and that offer can be accepted. In a tight market, that nuance keeps bidding tension alive.

What changed – and when. From 17 December 2022, agents were barred from soliciting offers above the advertised rent and required to list a single fixed price. From 3 August 2023, the same “no soliciting rent bidding” rule applied to any person, including landlords and digital application providers.

What hasn’t changed. NSW’s official guidance is explicit: ads must show a fixed price (no ranges like “$500–$550”, no “offers from”), and agents/landlords must not invite higher offers. Tenants can still offer more “voluntarily and freely,” and an unprompted higher offer may be accepted.

Penalties. Breaches attract Penalty Infringement Notices of $550 (individual) or $1,100 (corporation), with maximum court penalties of $5,500 and $11,000 respectively.

Why the pressure persists. Market conditions – not necessarily agent behaviour – often drive bidding. NSW’s monitoring shows solicited rent bidding has largely disappeared from listings (≈99% compliance), yet underbidding (tenants paying less than the advertised price) rose 36% between March and August 2024, signalling competition cuts both ways while vacancy stays low.

Tenant advocates argue the reform’s impact is limited while unsolicited higher offers remain permissible. Leo Patterson Ross, CEO of the Tenants’ Union of NSW, has said stopping solicitation is important, but the effect would be minimal unless accepting unsolicited higher offers is also addressed.

What renters should know now:

– Agents/landlords cannot ask you to offer above the listed rent, and ads must show a fixed price.

– You can choose to offer more, and an agent/landlord may accept if it’s clearly your initiative.

– If you’re told to “make an offer,” or you see a range/“open to offers,” that’s non-compliant – report it to NSW Fair Trading.

The ban cleaned up advertising and stopped solicited bidding, but didn’t end competition-driven price moves in a low-vacancy market. Until supply loosens or the unsolicited-offer gap is narrowed – many tenants will still feel pressure to pay a premium.

https://www.rent.com.au/blog/nsw-rental-bidding-ban. (2022, December 12). NSW moves to ban rental bidding, in line with VIC, QLD & TAS. Here’s what it means – Rent.com.au. Rent.com.au. https://www.rent.com.au/blog/nsw-rental-bidding-ban

National Vacancy Rates Fall to 1.2% in July -Rental Squeeze Intensifies. (2025). SQM Research. https://sqmresearch.com.au/uploads/12_8_25_National_Vacancy_Rates_July_2025.pdf

NSW Fair Trading. (2024, January 17). Advertising and rent bidding on rental properties. NSW Government. https://www.nsw.gov.au/housing-and-construction/rules/advertising-and-rent-bidding-on-rental-properties

NSW Fair Trading. (2025, February 3). Rent Bidding in NSW Insights Report. NSW Government. https://www.nsw.gov.au/departments-and-agencies/fair-trading/about/rent-bidding-nsw-insights-report

Trading, N. F., & Trading, N. F. (2023, April 6). Rent bidding – general fact sheet. NSW Fair Trading. https://www.fairtrading.nsw.gov.au/resource-library/housing-and-property/rent-bidding-general-fact-sheet