MELBOURNE, AUSTRALIA / RankWire.AI / – Rental increases across Melbourne have remained uneven, with several Dandenong Ranges and outer eastern suburbs recording much steeper gains than the citywide market. Olinda led a two-year comparison, where the median weekly rent rose 33.8% from A$613 to A$820. That increase added A$207 a week for tenants entering the local market. The comparison covered rental listings from March 2023 through February 2024 and the corresponding period through February 2026.
Sassafras ranked second, with its median weekly rent climbing 30.5% from A$600 to A$783. The Basin followed with a 29.4% increase, taking its median from A$483 to A$625. Coldstream posted a 27.8% rise from A$550 to A$703, while Lilydale increased 24% from A$500 to A$620. Together, the five suburbs recorded gains ranging from A$120 to A$207 a week, far above the broader Melbourne movement during the period.
The latest citywide figures show a slower rate of growth. Domain placed Melbourne’s median weekly asking rent at A$600 for both houses and units in the June 2026 quarter. House rents increased A$5 during the quarter and A$10 over the year. Unit rents held steady for the quarter but rose A$25 annually. Melbourne’s vacancy rate reached 1.2% in June, which remained the second-lowest June result in the series.
Local increases outpace citywide rental growth
The gap between local and metropolitan figures reflects the different areas and periods measured. The suburb analysis used two rolling 12-month windows, while the Melbourne benchmark tracked the latest quarter. Median rents describe the middle of recorded prices rather than the cost of every available home. Changes in the number, size or quality of properties entering the market can alter a suburb’s median, particularly in areas with relatively few rental listings.
For households, the weekly changes translate into substantial annual costs at the recorded medians. Olinda’s A$207 increase equals A$10,764 over 52 weeks, while the rise in Sassafras adds A$9,516. Coldstream’s increase equals A$7,956 a year, and The Basin adds A$7,384. Lilydale’s A$120 weekly increase amounts to A$6,240 annually. These calculations compare the two median levels and exclude bonds, utilities, moving costs and other tenancy expenses.
Official bond data confirms sustained pressure
Homes Victoria reported a metropolitan Melbourne median rent of A$580 a week for new lettings in the September 2025 quarter. That measure increased A$10 from the previous quarter. Its composition-adjusted metropolitan rent index rose 3.5% over the year, down from 8% one year earlier. The government series relies on rental bond records, while asking-rent measures use advertised properties. The datasets cover different stages of the rental market and should not be treated as identical.
The figures show that Melbourne’s overall rental growth can mask much larger changes in individual suburbs. Dandenong Ranges and Yarra Valley locations occupied all five leading positions in the verified two-year comparison. The local analysis measured longer-term changes, while the June figures recorded the latest citywide quarter. Olinda’s 33.8% increase was the largest verified rise, compared with annual growth of 1.7% for Melbourne houses and 4.3% for units.