The pace of rental growth has moderated significantly, yet national median rents have reached a record high, reflecting ongoing demand and supply imbalances in the property market.

According to the latest REA Group Rental Report, nationally advertised rents rose by 1.6% in the December quarter, bringing the median weekly rent to $620. In capital cities, the median sits at $640 per week, while regional rents remain unchanged at $550 per week.

After three years of sharp increases, rental price growth is now at its slowest rate since 2021.

Brisbane (1.6%) and Canberra (3.3%) were the only capital cities to record rent increases over the quarter. Other major markets, including Sydney, Melbourne, Adelaide, Perth, Hobart, and Darwin, remained flat compared to the previous quarter.

Despite the slower pace of rental growth, investors will find stability in the fact that national gross rental yields held steady at 4.4% in December 2024—unchanged from December 2023. While there were minor fluctuations across individual markets, the report notes these were generally minimal.

Future rental supply is expected to expand, with the latest Knight Frank Build to Rent Update revealing that 8,900 dedicated Build-To-Rent apartments are currently under construction nationwide.

An additional 20,000 units have been approved for development over the next five years, offering potential relief to tenants and opportunities for investors.