Updating rental market figures

As I mentioned in A POST A FEW WEEKS AGO, the impact of an increase in official interest rates on property investors can be quite multi-faceted, and is not simply a matter of increased holding costs for property owners.

For example, as financing costs have been rising recently, so too have rental incomes. The latest Quarterly Rental Report from Cotality reports that the ongoing shortage of available rental stock is continuing to push average rents higher across Australia. In fact, the rate of rental growth has reaccelerated in recent months.

Median Melbourne rents have risen by 2.3 per cent in the first quarter of 2026, contributing to a 4.4 per cent increase over the past year. The good news for Victorian renters is that this rate of growth is below many other places in the nation, with the combined capital average increase being 5.6 per cent. Rents in Hobart, Perth and Darwin all rose by between 6 and 9-plus per cent over the past year.

As I mentioned earlier, one of the key factors behind these increases is the shortage of available rental properties, with every Australian capital city apart from Canberra reporting vacancy rates under 2 per cent.

In case you’re wondering, Sydney remains the most expensive Australian city to rent in, with a median rent of $824 per week in March, whilst Darwin had the strongest annual increase in rents of 9.2 per cent.

Data like this could well have you taking a fresh look at your plans for 2026, whether you are looking at becoming a property investor for the first time or thinking of adding to your portfolio. Either way, if you would like some experienced and objective advice, don’t hesitate to give our highly regarded Property Management team at Barry Plant Thomastown a call this week on 9466 3233.

We are always happy to assist.

Regards,

Con Constantinou

Barry Plant Thomastown