Rent Growth Slows

Although the pace of rental growth has finally slowed, asking rents remain at record highs throughout Australia.

The national median advertised rent reached $675 a week in September, up 1.5% over the quarter, according to the latest REA Rental Report. The pace of growth in the previous quarter was 2.3%.

REA senior economic analyst Megan Lieu says the combined capital cities now have a median house rent of $680 per week, with Melbourne the cheapest at $595 per week.

Lieu says the slowing growth of rents is being driven by a slight increase in vacancies, which at 1.5%, is at the highest level since February 2022.

Sydney is the most expensive capital city rental market for houses at $850 a week, followed by Darwin at $800 and Perth at $750.

Median rents in Canberra are $730, Brisbane is $720, Adelaide is $650 and Hobart is $630.

Lieu says the outlook for the rental market depends on whether more investors leave the market.

“If investor activity does decline, that could increase prices, but if there is less competition, we could see that offset the decline in investor activity,” she says