SYDNEY, Oct. 8 (Xinhua) -- Median rent growth in Australia's capital cities has stagnated as tenants hit their affordability ceiling, according to a new report.
The latest quarterly rent report released by property marketplace Domain on Thursday showed that rent growth for houses and units in capital cities remained largely flat in the September quarter.
It said that the median asking rent for houses in all capital cities was 700 Australian dollars (487 U.S. dollars) per week in September, unchanged from June, while unit rents rose by 1.5 percent to 690 AUD (480 USD).
In Sydney, Australia's most expensive capital city property market, the median asking rent for houses declined by 0.6 percent between June and September, while the asking rent for units was unchanged.
Nicola Powell, Domain's chief residential economist, said that rents are absorbing a greater share of household incomes, stretching tenants' ability to withstand further increases.
"Tenants just aren't able to absorb further rent increases, limiting how much higher rents can actually go," she said.
"When you look at rents as a proportion of income, they're swallowing more of that income now than they have before."
Australia's central bank at the end of September raised the cash rate target for the fourth time in 2026 to a 15-year-high of 4.60 percent. Major banks all said they would pass on the interest rate rise to customers with variable rate mortgages.
Powell said that smaller-scale investors in the housing market could be forced to sell properties if they cannot raise rents further to offset holding costs. ■
