Why Are Perth and Brisbane Rents Catching Up to Sydney? What Accelerating Rental Growth Means for Property Investors in 2026

Key takeaway: CoreLogic reports that annual rental growth is accelerating across Australia, with Perth and Brisbane closing the rent gap to Sydney. For property investors, stronger rents improve cash flow and serviceability while the cash rate sits at 4.35% — making financing strategy as important as suburb selection.

Rental growth is no longer just a Sydney story

The clearest signal in CoreLogic's latest research is geographic: rental growth is re-accelerating on an annual basis, and it is Perth and Brisbane — not Sydney — doing the catching up. Sydney has long carried the country's highest rents, but the gap is narrowing as the smaller capitals absorb strong population demand against chronically tight rental supply.

For tenants that is unwelcome news. For landlords and would-be investors, it changes the return profile of markets that were once considered secondary: yield-focused buyers who went interstate in recent years are now seeing the income side of their investment strengthen.

Stronger rents change the maths for leveraged investors

The direct consequence: rising rents improve investor cash flow and can lift assessed borrowing capacity. With the cash rate held at 4.35% (RBA, June 2026), interest remains the dominant cost of holding an investment property, and every dollar of additional rent narrows the gap between rental income and repayments. Because lenders count rental income in serviceability assessments, accelerating rents can also support a stronger application — particularly in Perth and Brisbane, where yields were already comparatively healthy.

At the same time, inflation at 4.0% (ABS, May 2026) means the RBA is in no rush to cut. Investors banking on cheaper money soon should stress-test their numbers at today's rates, not tomorrow's hoped-for ones.

"Rental growth is no longer a Sydney story — it is a national story, and investors following the yield interstate need finance that can follow them."

What it means for investors: the MPFG view

Many of the investors best placed to act on this shift are the ones banks understand least. Self-employed business owners — restaurateurs, tradespeople, e-commerce operators — often have strong real cash flow, but tax returns structured for legitimate deductions can understate their income on paper, leading to bank declines. Alt doc loans allow income to be verified through BAS statements or an accountant's letter instead of payslips. Established owners can also refinance to release equity from an existing property to fund the next purchase, including interstate. You can compare MPFG's alt doc, refinance and investment lending options on our products page.

FAQ

Are rents still rising in Australia in 2026?

Yes. CoreLogic research published in July 2026 shows annual rental growth accelerating, with Perth and Brisbane closing the gap to Sydney's rents. Tight rental supply and steady population demand continue to support rents in most capitals.

Do higher rents increase how much I can borrow for an investment property?

Generally yes — lenders include a portion of expected rental income in serviceability assessments, so stronger rents can support borrowing capacity. Policies differ between lenders, and non-bank lenders may apply more flexible income recognition, subject to credit assessment.

Can I get an investment loan if I am self-employed without payslips?

Yes. Alt doc loans verify income through alternatives such as BAS statements, business bank statements or an accountant's declaration. They are designed for self-employed borrowers whose tax returns understate real cash flow, and all applications are subject to credit assessment.

This article is general information only and does not constitute financial or credit advice. All applications are subject to credit assessment by MPFG Capital (ACL 553698).