Q3 Investment Market Update from Cameron Kusher

Cameron Kusher - Property Economist

October 2025

Cameron Kusher has spent 20 years analysing Australia's property markets, most recently as Head of Research at REA and Cotality (previously CoreLogic). In this update, he examines the latest Victorian data and what it signals for rental providers entering the spring market.

According to the latest rental data, rents have pushed marginally higher over the September 2025 quarter and over the past year in Victoria. As such, rental providers are seeing steady growth without the volatility that can unsettle long-term investment strategies.

Melbourne Metro

The median rent for a Melbourne house was $580 per week in September 2025 and the median rent for a unit or apartment was only slightly lower at $570 per week. Despite strong increases over recent years, Melbourne has some of the lowest capital city rents throughout the country.

Melbourne house rents were unchanged over the quarter and 0.9 per cent higher over the year. Unit rents in Melbourne increased by 0.9 per cent over the quarter and 3.6 per cent over the year. This stability is reassuring for rental providers who value consistent, reliable returns over dramatic fluctuations.

James Street 003 — Regional Victoria
In regional Victoria, the median house rent in September 2025 was $490 per week and the median unit and apartment rent was $400 per week.
Regional Victoria house rents were 2.1 per cent higher over the quarter and 5.4 per cent higher over the year and unit and apartment rents were 1.3 per cent higher over the quarter and 5.3 per cent higher over the year.

While rents have increased a little over the year, rental vacancy rates for Melbourne were steady compared to a year ago at 2.4 per cent and they were marginally lower in regional Victoria falling from 2.0 per cent to 1.9 per cent. Victoria's strong population growth, driven by overseas migration, continues to underpin rental demand. Although vacancy rates are somewhat higher than they are in other states, they are still in a situation whereby they are lower than long-term average.

Throughout the Jellis Craig network, 1,808 properties were leased over the quarter with an median house rent of $700 per week. By comparison, over the same quarter last year, there were 1,729 new properties leased however, the median house rent was $690 per week.

While rental growth has been a little softer of late and relative to other states rental vacancy rates are somewhat higher, for well-located properties there is still significant rental demand owing to Victoria’s expanding population.

The Jellis Craig network has seen much higher rents achieved than the broader Victorian market and stronger rental growth which talks to stronger demand for rentals in the desirable locations that Jellis Craig offices are located.

I expect that rental demand is likely to continue to build as new housing supply remains low and focused on owner-occupiers and the population continues to climb. Furthermore, I expect that demand for rentals in more desirable locations will remain stronger than demand elsewhere.

As always, when you are a rental provider it is imperative to invest in sought-after markets with limited supply.