The pace of rental growth has slowed considerably, but national median rents have still hit a record high.

The latest REA Group Rental Report shows nationally advertised rents are up 1.6% in the December quarter to $620 per week. In capital city markets, it is $640 per week, and regional markets remain the same as the previous quarter at $550 per week.

After three years of significant increases, rents are now growing at their slowest pace since 2021. Brisbane (1.6%) and Canberra (3.3%) are the only capital city markets to record rent increases in the quarter. While no markets declined, Sydney, Melbourne, Adelaide, Perth, Hobart and Darwin’s asking rents did not move from the previous quarter. Despite the easing in rent growth, investors will be pleased the report shows gross rental yield is unchanged over the past year.

In December 2024, the national gross rental yield was 4.4%, the same as it was in December 2023. There were minor fluctuations between the various capital city and regional markets over the course of the year, but it was “generally small” according to the report.

The latest Knight Frank Build to Rent Update shows there will be more options for renters in 2025.
It says an estimated 8900 dedicated Build To Rent apartments are under construction nationally, and a further 20,000 units are approved for development over the next five years.