Property prices rise nationally as rental markets tighten further, says REIA
Property prices have risen across most Australian capital cities in the March quarter 2026, while rental vacancy
rates have fallen to low levels, according to the Real Estate Institute of Australia's (REIA) latest Real Estate Market
Facts report.
REIA President Jacob Caine said the results highlight a market under sustained pressure from both sides, prices
rising on the back of persistent demand, and rental conditions tightening at a pace that is leaving tenants with fewer
options and higher costs.
"The national median house price increased 2.2% over the quarter to $1,146,864, representing the highest annual
increase of 12.0% since March 2022," Mr Caine said.
"Darwin, Perth and Brisbane led quarterly gains, while Sydney, despite a modest quarterly decline of 0.6%,
remains the most expensive city in the country at a median house price of $1,550,000, which is 35.2% above the
national median."
Other dwellings recorded their highest annual price increase since June 2014, rising 9.0% nationally over the year,
with Adelaide (6.6%), Brisbane (5.4%) and Perth (5.4%) recording the most substantial quarterly gains.
The national weighted vacancy rate fell to 1.7% over the March quarter, well below the 3.0% industry benchmark
that signals a balanced market. Brisbane and Adelaide recorded vacancy rates of just 0.7%.
The report showed national median rents for three-bedroom houses rose 2.0% over the quarter to $643 per week,
with increases recorded across most capital cities. For two-bedroom other dwellings, the national median rent
increased 3.7% to $674 per week, with increases across all capital cities ranging from 1.7% in Melbourne to 5.3%
in Sydney.
Mr Caine said the rental figures must be read alongside the joint independent modelling released following the
2026–27 Federal Budget, which shows proposed changes to negative gearing and capital gains tax concessions
could push rents up by as much as $9 per week over the next four years.
"In a market where vacancy rates are already at crisis levels, and rents are rising every quarter, the last thing
tenants need is policy that reduces the incentive for private investors to provide rental housing," Mr Caine said.
"Private investors supply the overwhelming majority of Australia's rental stock. Reducing the tax competitiveness of
residential property investment in a supply-constrained market will reduce the number of properties available to
rent, drive vacancy rates lower still, and push rents higher."
Mr Caine said the findings of the March quarter report reinforce the need for policy settings that support housing
supply and private investment, not undermine them.
"Addressing Australia's housing challenge requires more homes, not fewer investors. Strong dwelling completions
and stable tax settings that encourage investment are the foundations of a rental market that works for tenants."
Media contact:
Jacob Caine, REIA President
0407 393 599 | jcaine@rcaine.com.au
Read the Media Release
