Weekly rents have climbed to unprecedented levels in almost every Australian capital city, according to fresh data, with only Melbourne bucking the national trend of record-setting prices. However, analysts predict the Victorian capital is quietly positioning itself for a significant long-term growth phase.
Capital City Rentals: A Tale of Two Markets
The latest Domain Rent Report paints a stark picture of the national rental landscape. Sydney retains its position as the country's most expensive city for tenants, with median weekly house rents sitting at a hefty $800. At the opposite end of the scale, Melbourne offers the most affordable house rents nationally, with a median of $580 per week.
The report highlights Brisbane as the market with the most dramatic recent upswing. Rents in the Queensland capital jumped sharply over the last quarter to reach $670 per week. Notably, Brisbane is the only capital to have recorded a simultaneous boost in rental growth for both houses and units.
The Drivers of Demand and Future 'Hero' Cities
Housing experts point to a wave of relocation driven by affordability pressures, with many residents moving away from traditional city centres and into newer greenfield developments. Gareth Croy, Managing Director of financial and property firm Your Future Strategy, noted that a tighter supply in Brisbane is a key factor fuelling its rapid growth.
Looking further ahead, the analysis suggests a major shift is on the horizon. Beyond the early 2030s, Melbourne is forecast to emerge as the standout 'hero' for growth among Australian capitals. "Based on the growth rates across other capital cities, it (Melbourne) is going to become substantially cheaper, and therefore it's going to draw demand because that's the option that people can afford," Mr Croy explained.
Suburban Hotspots and the New Commute
A related report from the firm indicates that the nation's next property growth cycle in 2026 will not be led by prestige or trendy inner-city areas. Instead, growth will focus on suburbs where infrastructure and lifestyle amenities are visibly improving.
In Sydney, Parramatta is highlighted as a major focus for buyers, having evolved into a 'second CBD' with a median house price of $1,480,000. Mr Croy attributes this to changing work patterns: "It's good old fashioned property economics around people wanting to live close to employment, so reducing travel time to and from work. Proximity to the CBD is less important for people and the creation of that hub is becoming desirable."
In Melbourne, suburbs like Werribee West (median house price $580,000) and Box Hill are expected to remain attractive to buyers. In Brisbane, Bracken Ridge and Kedron are the two suburbs tipped to stay in high demand from purchasers.
