Domain report shows record rents in Brisbane, Sydney and Melbourne

Median asking rents reached $700 for Brisbane houses, $780 for Sydney units and $600 for Melbourne units, while vacancy rates stayed below 2 %.

By Felo News Desk · Published Wed, 07 Oct 2026 19:02:08 GMT

Domain’s September‑quarter rent report, released on Thursday, shows median asking rents at record levels in Brisbane, Sydney and Melbourne, with vacancy rates remaining tight.

What happened

In Brisbane, the median asking rent for a house was $700 a week and $660 for a unit, up $40 and $20 respectively from the previous year. Sydney’s median unit rent held at $780 a week, a 4 % year‑over‑year rise, while the median house rent slipped 0.6 % to $835 a week. Melbourne’s median unit rent was $600 a week, matching the median house rent after a $20‑$25 annual increase.

What the reports add

Brisbane: rents stalled over the last three months and outer‑suburban areas saw notable hikes – unit rents in Moreton Bay rose 5.5 % to $580 a week and in Loganlea‑Carbrook 6.5 % to $495. Vacancy stayed ultra‑low at 0.7 %.
Sydney: vacancy edged up to 1.2 % but stays far below the 3 % balance point. The sharpest unit‑rent jump was in the inner south‑west, up 2.9 % to $700 a week.
Melbourne: vacancy held steady at 1.4 %. Unit rents surged 3.3 % in the inner east to $620, 2 % in the north‑east and 1.1 % in the west. House rents only rose in the inner south.

What was said

“Rental listings have declined compared to this time last year … so it’s still a landlords’ market,” Dr Nicola Powell told SMH.

“With interest rates and growth, maybe we’ve seen an affordability ceiling being hit,” Powell added.

“A low vacancy rate, like the one we have in Sydney, usually translates into rapid rent increases, but that’s just not happening right now. It tells us a lot about affordability ceilings being reached,” she said.

“The data is not showing that effect yet, but this is the first full quarter since the budget,” Powell noted regarding tax changes.

“Investors left the market in Melbourne a while ago because of weak capital growth and higher land taxes at a state level, so the exposure to further changes is going to be less so than other capital cities,” Powell explained.

How it came about

The quarterly report follows months of rising rents across Australia’s major cities, driven by limited housing supply, high construction costs and recent federal budget measures affecting investors.

Key facts

Brisbane median house rent $700 per week, unit $660 per week (smh.com.au)
Sydney median unit rent $780 per week, house rent $835 per week (smh.com.au)
Melbourne median rent $600 per week for both houses and units (smh.com.au)
Vacancy rates: Brisbane unspecified, Sydney 1.2%, Melbourne 1.4% (smh.com.au)
Dr Nicola Powell said the market remains a landlords’ market (smh.com.au)

Where accounts differ

Exact wording of Dr Powell’s quote on affordability ceilings: With interest rates and growth, maybe we’ve seen an affordability ceiling being hit. (smh.com.au); A low vacancy rate, like the one we have in Sydney, usually translates into rapid rent increases, but that’s just not happening right now. It tells us a lot about affordability ceilings being reached. (smh.com.au)