Sydney leads in record high house rents in Australia’s state capitals

Australia is experiencing record high house rents in most of its state capitals despite increased supply from investors and developers according to the Domain Group’s Rental Report for the March quarter.

The report showed a 0.8% increase over the March quarter in the national median weekly asking rents for houses, while unit rents also increased by 0.4%.

Although Sydney has recently experienced record investor activity, continuing housing shortages means it is still one of the most expensive capital cities for tenants with median asking rents at $520 per week for houses and $500 per week for units -the highest level on record for the city.

Melbourne also experienced record growth in house and unit rents over the March quarter with a 2.5% increase in the median asking rent for houses to $390 per week and a 1.4% increase in unit rents to $365 per week.

“The prospect of lower interest rates, relatively high comparative yields and capital growth will continue to fuel residential investor activity, particularly in the Sydney market,” explained Domain Group senior economist Andrew Wilson.

“Melbourne, Brisbane, Adelaide, Hobart and Canberra are also likely to record continued growth in house rents over 2015, reflecting tight local rental markets. Unit rents in Brisbane, Canberra and Melbourne, however, are likely to continue to shift sideways due to recent apartment construction in both those cities.”

“Upwards pressure on rents is set to continue through 2015 in most capitals with the exception of Perth and Darwin,” he said.

Although Perth house rents remained steady at $450 per week over the March quarter, the market continues to weaken as annual growth decreased by 5.3%, while unit rents decreased by 3.8% over the year. Darwin experienced a similar situation with falling house and unit rents over the March quarter.

Wilson explained that weakening economic activity, particularly from the resource sector, in addition to affordability barriers, are likely to “continue to impact the Perth and Darwin rental markets with continued downward pressure on rents predicted in both those cities.”

Are you on the hunt for a new home? Check out the below home loans to find a great deal for you:

Home loan comparisons on Mozo - last updated 13 August 2022

Search promoted home loans below or do a full Mozo database search . Advertiser disclosure
  • Variable Home Loan 70

    interest rate
    comparison rate
    Initial monthly repayment
    3.10% p.a. variable
    3.12% p.a.

    Affordable home loan rate for buyers or refinancers.. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 30% deposit required.

    Details
  • Unloan Variable

    Owner Occupier, Refinance Only

    interest rate
    comparison rate
    Initial monthly repayment
    3.14% p.a. variable
    3.06% p.a.

    For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.

    Details
  • PAYG Home Loan

    Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    3.29% p.a. variable
    3.33% p.a.

    Low variable rate. Ideal for new home buyers or refinancers. Unlimited additional repayments. Unlimited free redraw. Application completely online. Optional 100% offset can be added for $120 p.a.. 20% deposit required.

    Details
  • Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    3.79% p.a. variable
    3.79% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required.

    Details

* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.