Sydney, Brisbane and Darwin drove a $20 weekly jump in capital city house rents in the June 2026 quarter. It was the strongest annual growth in Australian house rents in almost two years, according to Domain Group.
Domain said the acceleration was concentrated in houses. Sydney, Brisbane, Canberra and Darwin recorded the largest gains. Unit markets showed less movement outside Sydney and Darwin.
Domain linked the timing to proposed housing investment policy changes announced during April and May 2026. The report said landlords lifted asking rents where market conditions allowed.
Higher borrowing costs also played a role. The Reserve Bank of Australia (RBA) raised the cash rate three times in the first half of 2026. Those increases added to holding costs for investors. Domain said rent increases were brought forward rather than filtering through gradually.
The report noted that the effects are showing up in landlord pricing behaviour. Larger structural effects on supply are likely to emerge over time as investor behaviour adjusts.
Sydney house rents reached a record $850 per week. The 6.3% quarterly rise was the largest of any capital. Annual growth reached 7.6%.
Sydney unit rents also set a record at $780 per week. They rose 4% over the quarter.
The city’s vacancy rate sat at 1.1% in June 2026. It was unchanged from a year ago and remained at a record low for this time of year in Sydney.
Melbourne house rents rose 0.8% to $600 per week. Unit rents were flat. Annual house rent growth sat at 1.7%.
Perth house rents rose 0.4% to $750 per week. It was the weakest June quarter result in six years.
Darwin house rents rose 5.6% to a record $760 per week. Unit rents rose 8.3% to $650 per week. Domain said that unit increase was the strongest since 2009.
Darwin’s vacancy rate fell to 0.1%, a record low. Annual unit rent growth reached 18.2%. Darwin overtook Perth as the second most expensive capital for house rents.
Domain said affordability is acting as a constraint on further growth. In Melbourne, Adelaide, Perth and Hobart, renters have limited capacity to absorb further increases.
Sydney, Darwin, Brisbane and Canberra showed the opposite pattern. Growth accelerated despite already tight conditions.
Brisbane house rents rose 2.9% to $700 per week. Unit rents were flat at $660 per week. Adelaide house rents reached $650 per week. Canberra reached a record $710 per week for houses.
The report described the result as a rental market now operating at two distinct speeds.
| City | House rent | QoQ | Unit rent | QoQ | Vacancy |
|---|---|---|---|---|---|
| Sydney | $850 | +6.3% | $780 | +4.0% | 1.1% |
| Melbourne | $600 | +0.8% | $600 | 0.0% | 1.2% |
| Brisbane | $700 | +2.9% | $660 | 0.0% | 0.6% |
| Adelaide | $650 | +1.6% | $550 | 0.0% | 0.4% |
| Canberra | $710 | +1.4% | $580 | 0.0% | 1.2% |
| Perth | $750 | +0.4% | $700 | +0.7% | 0.5% |
| Hobart | $625 | +0.8% | $520 | +4.0% | 0.4% |
| Darwin | $760 | +5.6% | $650 | +8.3% | 0.1% |
Source: Domain Group Rental Report, June 2026 quarter
Rising rents in Sydney, Brisbane and Darwin lift rental yields for investor-held properties. That affects serviceability calculations on investment loans.
In Melbourne and Perth, rental income growth has slowed. Brokers assessing investor portfolios may need to model city-specific rental trajectories rather than national averages.
The federal budget’s negative gearing changes remain a factor for investor sentiment. Domain noted that larger structural effects on supply are likely as investor behaviour adjusts.
Five capitals recorded vacancy rates below 1% in June 2026. The next test comes when September quarter data reveals whether affordability has caught up with the cities still accelerating.
