After a brief slowdown at the end of 2024, rental prices across Australia have picked up pace once again, PropTrack reported.
The national median advertised rent climbed by 1.6% during the March 2025 quarter, pushing the weekly figure to $630.
This marks a 5% increase compared to the same time last year, equating to an annual rise of around $1,560 for tenants.
Anne Flaherty (pictured), senior economist at REA Group, noted that the recent figures point to a renewed momentum in the market.
“The speed at which rents are rising has picked up over the first three months of 2025, reversing the trend of slowing rent growth seen late last year,” Flaherty said.
Apartments have experienced faster price increases than houses, both in metropolitan and regional locations.
Over the past three months, unit rents in cities rose by 3.2%, while houses climbed by a more modest 1.6%.
Regional areas followed a similar pattern, with unit rents increasing by 3% and house rents remaining relatively flat.
This divergence suggests shifting demand toward more affordable rental options as affordability pressures persist.
The overall national rent increase was largely driven by capital cities, where median advertised rents now stand at $650 per week. In contrast, regional rents stayed stable at $550 per week during the same period.
Queensland and South Australia stood out over the past 12 months, with both their capital and regional areas recording the strongest rent rises. On the flip side, the slowest annual growth was recorded in Canberra (1.6%) and Sydney (4.2%).
Sydney, which is poised for major transformation with upcoming infrastructure projects, continues to top the list as Australia’s most expensive city for renters.
“Sydney remains the most expensive city to rent in, with renters paying an additional $70 per week compared with those in the second most expensive city, Perth,” Flaherty said.
The disparity is even more stark when compared with Melbourne.
“Compared with Melbourne, a renter in Sydney is typically paying $9,100 more per year in rent,” Flaherty said.
Meanwhile, Melbourne remains a relatively affordable option.
“Melbourne is the second cheapest capital city to rent in, behind only Hobart, maintaining its relative affordability,” Flaherty said, adding that it also has the narrowest price gap between units and houses.
Despite the recent uptick, the pace of rent growth is expected to remain manageable.
“Looking ahead, the more modest pace of rent growth seen over the past 12 months is expected to continue throughout the rest of this year,” Flaherty said.
