Melb surprise winter trend amid housing crisis

The four-bedroom house at 1/9-51 Briggs St, Caulfield, is advertised to rent for $1100 a week. The suburb experienced a 9.1 per cent increase in median advertised rent in the three months to August, according to PropTrack.

Steady Melbourne rent prices in winter is not a sign that cost of living pressures is easing on renters, experts warn.

PropTrack’s latest quarterly data shows rent prices remained steady in the three months to August in Melbourne, though suburbs recording an uplift in median advertised rents increased as much as 10 per cent.

PropTrack senior economist Eleanor Creagh said there’s a recalibration in the nation’s rental markets.

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“Vacancies still remain low by historical standards but rental price growth has eased significantly, although rents are elevated after years of record growth,” Ms Creagh said.

“We’re not seeing a retreat in rental price pressure but certainly an easing in Sydney, Brisbane and Melbourne (where prices are steady).

“Perth is leading annual growth and it looks like (rents in) Adelaide are continuing to increase but it does look like we may have approached an affordability ceiling.”

More suburbs were steady or saw asking rents fall in winter, the median price data by suburb reveals.

PropTrack senior economist Eleanor Creagh said rental vacancies remain at historic lows.

While houses in Elwood saw the biggest jump in median rent, from $1000 a week in May to $1100 in August, the average increase in median rent across 113 suburbs was $15.

Median prices did not change in 188 suburbs, while for the 187 suburbs where median rents fell, the average drop was $16 a week.

With advertised rents at record highs nationally, Ms Creagh couldn’t rule in or out whether renters would ever see a reduction in rental medians in the years ahead.

“But at the moment, we’re continuing to see that rents are still moving higher but at a much, much slower pace,” Ms Creagh said.

The three-bedroom house at 5 Chaucer St, Moonee Ponds, is advertised to rent for $1000 a week. The suburb experienced a 3.6 per cent increase in median advertised rent in the three months to August, according to PropTrack.

“Without a bigger supply response, it’s not likely that we’ll see rents moving backwards.”

Property Investment Professionals is Australia (PIPA) chair Lachlan Vidler said supply pressure was worsening in Victoria, where high debt levels and rising holding and compliance costs contributed to more investors saying they’re selling a rental property this year compared to 2024.

“The biggest reason right now that people are selling is coming from wanting to reduce their debt exposure,” Mr Vidler said.

“But the second-biggest reason – and it’s only smaller by about 1.3 per cent – is rising holding and compliance costs and then you get coming in behind that increased land tax and government charges.

Property Investment Professionals of Australia chair Lachlan Vidler.

“A lot of people are just starting to get a little bit fed up with all the taxes, all the charges and that autonomy that’s getting taken away from them.”

Mr Vidler said 42 per cent of investment properties ended up remaining in the rental pool after selling, but not all renters were in a position to buy and the smaller pool was adding pressure to them.

“At the end of the day, the only reason anyone can put up the price of a rental property is because more people want to rent it than don’t,” Mr Vidler said.

“And that unfortunate by-product is because, right now there’s just such a shortage.”

WITH LYDIA KELLNER

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