iscover
iscover 
National rental values rose by 1.7 per cent over the March quarter, up from a 0.4 per cent increase in the December quarter, according to CoreLogic’s (soon to be rebranded as Cotality) latest Quarterly Rental Review.
However, CoreLogic economist Kaytlin Ezzy said the uptick was largely seasonal and not reflective of a return to strong rental growth. The 1.7 per cent rise marked the slowest March quarter growth since 2019 and was a full percentage point below the 2.7 per cent increase recorded in the same period last year.
“Rental growth is still tracking above the pre-COVID-19 decade annual average of 2.0 per cent, but the rate of change has slowed considerably. At 3.8 per cent, the 12-month change is now less than half the recent 8.3 per cent peak recorded over the year to March 2024,” Ezzy said.
She said that worsening affordability and slowing population growth were contributing to larger average household sizes, reducing overall demand and placing downward pressure on rental value growth.
Despite the moderation, supply remains tight. Only around 99,000 properties were listed for rent nationally over the four weeks to 6 April – 22.1 per cent below the historic average for this time of year.
Vacancy rates fell to 1.6 per cent in March, down from 2.0 per cent in December, and just 10 bps above the record low recorded in March 2024.
The quarterly increase was driven primarily by unit rentals, which rose 2.3 per cent compared to a 1.4 per cent increase for houses. This reversed a recent trend where houses had consistently outperformed units.
Ezzy said: “The renewed growth in unit rents is likely linked to the seasonal lift in demand from international students who typically favour higher density housing.”
The growing preference for houses over the past year has widened the gap between median house and unit rents, rising from $38 in June 2023 to $47 in March 2025.
“While still below the $71 gap recorded at the end of 2021, the expanding of the house rent premium has eroded some of the relative affordability advantage that some renters have gained by forming larger share houses,” Ezzy said.
Among the capitals, Hobart recorded the highest rental growth in the March quarter at 2.3 per cent, followed by Perth (2.2 per cent), Brisbane (1.9 per cent), and Adelaide (1.8 per cent).
Sydney and Melbourne both rebounded from declines in the December quarter, with rents rising by 1.4 per cent and 0.8 per cent, respectively. Darwin saw the weakest result with just a 0.3 per cent increase.
On an annual basis, Perth continues to lead with rents up 6.3 per cent, followed by Adelaide (5.5 per cent) and Hobart (4.6 per cent). Canberra recorded the smallest annual increase at 1.6 per cent, equal to an additional $10 per week.
Hobart remains the most affordable rental capital with a median weekly rent of $574, while Sydney holds its place as the most expensive at $781 per week.
While the March quarter saw a seasonal lift, Ezzy said overall rental growth is likely to remain subdued in the near term.
Since March 2020, national rents have increased by 38.4 per cent, equivalent to an extra $182 per week or $9,442 annually. This affordability pressure has led many renters to adjust by forming larger households or delaying independent living, further reducing net rental demand.
“Given the easing in demand, it’s likely rental growth will remain relatively subdued over the coming quarters, even in the face of tight supply,” Ezzy said.
Recent migration data also supports this outlook, with net overseas migration in the year to September 2024 falling to just under 380,000 people – more than 30 per cent lower than the previous year’s peak.
[RELATED: Rentvesting to become ‘default strategy’ for investors]
