Tenants are paying up to $60 a week more for accommodation than they were 12 months ago, according to figures released by RUN Property on Saturday.
Fairfield in Melbourne had the highest leap in rental prices (13.4 per cent), followed by Edgecliff in Sydney's eastern suburbs (12.6 per cent).
These were closely followed by hikes of 11.7 per cent in the Sydney north shore suburb of Cremorne and 11.5 per cent in Surry Hills in inner Sydney.
A Director of a real estate group said 24 suburbs in Sydney and 18 in Melbourne saw rent increases of more than six per cent for new tenants in January, compared with the same time last year.
"The popular suburbs close to beaches, major shopping centres or train stations continue to go from strength to strength for investment property," Mr Farmer said in a statement.
The average rent rise across Melbourne when new tenants moved in was 5.4 per cent, bringing the average rent up to $383 a week.
In Sydney, the average rent increase was 7.4 per cent, up to $545 a week, while in Brisbane, rents rose by 3.3 per cent bringing the average rent to $346 a week.