Overview
- Domain’s December Rent Report shows Sydney’s median house rent at a record $800 a week, with units at a record $750 after a 7.1% annual rise.
- Melbourne’s median unit rent reached $580 a week, equalling house rents for the first time since 2012, with rents roughly $200 a week higher than four years ago for units.
- Vacancy rates remain well below a balanced level at about 1.4% in Sydney and 1.6% in Melbourne, sustaining a landlord’s market despite a seasonal uptick.
- Analysts cite long-running supply shortfalls, strong demand for inner- and middle-ring medium/high-density homes, and a lift in first-home buyer activity in Victoria reducing investor competition.
- Renters are hitting an affordability ceiling, prompting moves to cheaper areas or shared housing and intense competition at inspections, while Brisbane also posted fresh records with houses at $670 and units at $650 and sub-1% vacancy.