Capital city rents hit record highs apart from one

Tess Ikonomou |

Every Australian capital bar one recorded annual growth in house rents according to a report.
Every Australian capital bar one recorded annual growth in house rents according to a report.

Rents have hit record highs in all Australian capitals bar Melbourne, but property analysts expect the cultured metropolis to yield long-term growth.

The latest Domain Rent Report reveals Melbourne has the cheapest house rents in the country at a median weekly rate of $580, while Sydney has the highest at $800.

Brisbane recorded the biggest jump in rents over the last quarter, to $670 a week, with the Sunshine State having the only capital with a rental growth boost for both houses and units.

Housing rent
Melbourne was the only capital not to record annual gains in housing rents for the December quarter. (Joanna Kordina/AAP PHOTOS)

Housing experts say many have relocated to other cities due to unaffordability of markets, moving further away from city centres and into greenfield developments.

A shorter supply in Brisbane was helping fuel that growth, financial and property firm Your Future Strategy’s managing director Gareth Croy said.

But after the early 2030s it is expected Melbourne would stand out as a “hero” for growth in capital cities.

“Based on the growth rates across other capital cities, it (Melbourne) is going to become substantially cheaper, and therefore it’s going to draw demand because that’s the option that people can afford,” Mr Croy said.

Melbourne houses
Melbourne’s housing market is is tipped to become a capital city growth “hero” in the early 2030s. (Diego Fedele/AAP PHOTOS)

A report by the firm has found the nation’s property growth cycle in 2026 won’t be led by prestige suburbs or trendy inner-city postcodes, but instead areas where infrastructure and lifestyle are improving.

In Sydney, Parramatta stands out for buyers with the western suburb now a “second CBD” and the median house price at $1,480,000.

“It’s good old fashioned property economics around people wanting to live close to employment, so reducing travel time to and from work,” Mr Croy said.

Apartment rents
Apartment rents grew in every Australian capital city, in the December quarter on an annual basis. (Joanna Kordina/AAP PHOTOS)

“So proximity to the CBD is less important for people and the creation of that hub is becoming desirable for people to just stay around that same area.”

Werribee West and Box Hill in Melbourne are two suburbs expected to remain attractive to buyers, with the former recording a median house price of $580,000.

In Brisbane, Bracken Ridge and Kedron were the two suburbs expected to remain in high demand.

AAP