Invest
Apartment rents tumble off the cliff in Sydney and Melbourne
Apartment rents have fallen off a cliff in Sydney and Melbourne on the back of collapsing demand among internationals students and migrants, and changes to personal finances.
Apartment rents tumble off the cliff in Sydney and Melbourne
Apartment rents have fallen off a cliff in Sydney and Melbourne on the back of collapsing demand among internationals students and migrants, and changes to personal finances.
According to Domain’s latest rental report, Sydney’s unit rents have tumbled to 2013 prices, dropping 5.1 per cent on the quarter and 7.8 per cent on the year to $470 in December. This marks the steepest quarterly and annual fall since Domain rental records began in 2004.
Similarly, Melbourne suffered a 3 per cent quarterly decline and 7.6 per cent yearly decline to a five-year low of $388.
Of all the capital cities, Melbourne units have recorded the deepest fall in asking rent since pre-pandemic March, down 9.8 per cent.
Domain highlighted that although the rate of decline eased over the December quarter, three consecutive quarterly falls have resulted in the steepest annual fall on record.
“For the first time in five years, Melbourne is the third most affordable capital city to rent a unit, after Adelaide and Perth,” Domain said.
“A marked change considering Melbourne was the third most expensive city to rent a unit back in March. Inner-city apartments have been hardest hit with rents at a seven-year low, followed by the inner east and inner south hitting a four-year low.”
As for Sydney, Domain explained that unit rents have been hardest hit in the city and east and inner west, with rents at an eight-year low, while the lower north shore is the cheapest in nine years.
Two areas have bucked the downward trend: unit rents on the Central Coast and Northern Beaches have reached record highs.
“Annually, unit rents have been falling since mid-2018, but this trend has been accelerated by changes as a result of COVID-19.
“The pandemic-induced collapse to overseas migration and foreign student numbers has reduced rental demand. Units have felt the impact, particularly inner-city apartments, which are home to more rentals and have a greater exposure to demand sourced from overseas migrants,” Domain said.
It tipped that while vacant unit rentals will continue to rise, tenants in search of a house will start to find fewer available to rent.
RELATED ARTICLES
About the author
About the author
Property
2026 property expansion? Why disciplined investors will wait — and where to play offence
A growing chorus of market practitioners is urging investors to pause portfolio expansion in 2026 as returns compress and policy settings tighten. The headline risk is less about price crashes and ...Read more
Property
Cost, red tape and capital: why Australia’s housing pipeline is shrinking — and how to rebuild it
Australia’s housing pipeline is being choked by a toxic mix of escalating input costs, regulatory drag and tighter finance. The result: mid-market projects stall while luxury builds proceed, pushing ...Read more
Property
Start 2026 strong: Turn property advice into a data-driven advantage
In 2026, property professionals who industrialise goal-setting and risk management with data and AI will capture outsized client value. The playbook is shifting from intuitive advice to measurable, ...Read more
Property
Solar for renters isn’t just social policy — it’s a new operating model for residential property
Queensland’s Supercharged Solar for Renters program, backed by the REIQ, reframes the ‘split incentive’ that has stymied energy upgrades in rentals. With rebates of up to $3,500 per property and joint ...Read more
Property
Holiday towns as assets, not postcards: How to invest where the beach meets the balance sheet
Summer seduces capital to the coast, but the smart money treats holiday towns like operating businesses, not lifestyle trophies. Demand is seasonal, regulation is variable, and returns depend on ...Read more
Property
First Home Supply: a $10b bet on 100,000 keys — and a reshaping of Australia’s build-to-sell pipeline
Can $10 billion translate into 100,000 front doors for first-time buyers — without overheating costs or stalling on approvals? The new First Home Supply program signals a pivot from demand-side ...Read more
Property
Navigating the crunch: A 2025 case study of Australia’s housing market and the operators who outperformed
Australia’s 2025 property market was defined by a stubborn supply squeeze and cost-of-living pressure—tempered by rate cuts and targeted incentives. Yet a cohort of developers, lenders and agencies ...Read more
Property
Australia’s mortgage rebound: a 19% surge that reshapes pricing, risk and distribution
New APRA figures show new home lending jumped 18.9% in the September quarter year-on-year, signalling a demand recovery despite elevated rates. The upswing intensifies a three-way contest between ...Read more
Property
2026 property expansion? Why disciplined investors will wait — and where to play offence
A growing chorus of market practitioners is urging investors to pause portfolio expansion in 2026 as returns compress and policy settings tighten. The headline risk is less about price crashes and ...Read more
Property
Cost, red tape and capital: why Australia’s housing pipeline is shrinking — and how to rebuild it
Australia’s housing pipeline is being choked by a toxic mix of escalating input costs, regulatory drag and tighter finance. The result: mid-market projects stall while luxury builds proceed, pushing ...Read more
Property
Start 2026 strong: Turn property advice into a data-driven advantage
In 2026, property professionals who industrialise goal-setting and risk management with data and AI will capture outsized client value. The playbook is shifting from intuitive advice to measurable, ...Read more
Property
Solar for renters isn’t just social policy — it’s a new operating model for residential property
Queensland’s Supercharged Solar for Renters program, backed by the REIQ, reframes the ‘split incentive’ that has stymied energy upgrades in rentals. With rebates of up to $3,500 per property and joint ...Read more
Property
Holiday towns as assets, not postcards: How to invest where the beach meets the balance sheet
Summer seduces capital to the coast, but the smart money treats holiday towns like operating businesses, not lifestyle trophies. Demand is seasonal, regulation is variable, and returns depend on ...Read more
Property
First Home Supply: a $10b bet on 100,000 keys — and a reshaping of Australia’s build-to-sell pipeline
Can $10 billion translate into 100,000 front doors for first-time buyers — without overheating costs or stalling on approvals? The new First Home Supply program signals a pivot from demand-side ...Read more
Property
Navigating the crunch: A 2025 case study of Australia’s housing market and the operators who outperformed
Australia’s 2025 property market was defined by a stubborn supply squeeze and cost-of-living pressure—tempered by rate cuts and targeted incentives. Yet a cohort of developers, lenders and agencies ...Read more
Property
Australia’s mortgage rebound: a 19% surge that reshapes pricing, risk and distribution
New APRA figures show new home lending jumped 18.9% in the September quarter year-on-year, signalling a demand recovery despite elevated rates. The upswing intensifies a three-way contest between ...Read more
