Landlords appear to be pricing in tax changes before they take effect, latest report suggests
National rental growth picked up pace over the June quarter, with Domain's latest report pointing to landlord expectations around housing investment policy as the driver, rather than any fresh shortage of rental stock.
The property platform's June Quarter 2026 Rent Report found combined capital city house rents climbed $20 over the quarter, pushing annual growth to its highest rate in almost two years. Unit rents rose by a smaller $5, widening the gap between the two segments of the market.
Sydney recorded the sharpest rise, with house rents up 6.3%, or $50, over the quarter to a record $850 a week — the largest quarterly jump of any capital and the city's best result since 2022. Sydney unit rents also rose, up 4%, or $30, to a record $780 a week.
Brisbane house rents rose 2.9%, or $20, to a record $700 a week. Darwin posted the strongest annual growth nationally, with house rents up 11.8% and unit rents up 18.2%, against a vacancy rate of just 0.1%. Darwin has now overtaken Perth as the second-costliest capital for house rents.
Melbourne remained subdued, with house rents up only $5 over the quarter and unit rents flat. Annual unit rent growth in the city fell to a four-and-a-half-year low.
The pickup was not spread evenly, Domain noted. Sydney, Brisbane, Canberra and Darwin drove the acceleration, while Melbourne, Perth, Adelaide and Hobart saw more modest movement despite vacancy rates sitting near record lows in most cities.
| Capital city | Jun-26 | Mar-26 | Jun-25 | QoQ | YoY |
|---|---|---|---|---|---|
| Sydney | $850 | $800 | $790 | +6.3% | +7.6% |
| Melbourne | $600 | $595 | $590 | +0.8% | +1.7% |
| Brisbane | $700 | $680 | $650 | +2.9% | +7.7% |
| Adelaide | $650 | $640 | $620 | +1.6% | +4.8% |
| Perth | $750 | $747 | $700 | +0.4% | +7.1% |
| Canberra | $710 | $700 | $690 | +1.4% | +2.9% |
| Darwin | $760 | $720 | $680 | +5.6% | +11.8% |
| Hobart | $625 | $620 | $580 | +0.8% | +7.8% |
| Combined capitals | $700 | $680 | $650 | +2.9% | +7.7% |
| Combined regionals | $610 | $600 | $580 | +1.7% | +5.2% |
According to Domain's chief residential economist, Nicola Powell (pictured right), the timing and scale of the increase pointed to a shift in landlord behaviour rather than a seasonal pattern.
“The acceleration we've seen this quarter was too sudden and concentrated to be explained by seasonal factors alone,” she said. “As more clarity emerged around proposed housing investment policy changes during April and May, many landlords appear to have responded by increasing asking rents where market conditions gave them the opportunity.
“This doesn't necessarily mean rental supply has worsened, but it does suggest expectations about future market conditions are already influencing pricing decisions. At this stage, we're seeing the impact more in landlord sentiment than in rental availability. However, over time, we expect policy changes to have a greater influence on investor behaviour, which could ultimately affect rental supply.”
Powell also noted that rental markets across the country are moving in different directions.
“Sydney, Brisbane, Canberra and Darwin are continuing to record strong rental growth,” she said. “In contrast, Melbourne, Adelaide, Perth and Hobart are showing signs that affordability limits are starting to cap further rent increases, even with vacancy rates remaining exceptionally low.
“The real test will come in the months and years ahead as investors adjust to the new policy environment and those decisions begin to flow through to housing availability and rental conditions.”
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