New rental rules start tomorrow, and what Melbourne rooms are advertised for

Sample ensuite rooms advertised across Melbourne this week, one per suburb, each with its own bathroom. Rents are advertised weekly prices per room, not achieved rents. Where two prices show, the first is the shorter lease and the second the longer lease.12

Some of what we observed on the market this week. Figures are as stated by each advertiser; where the ad gives no price, we use its price guide or the price range in its statement of information. The last column is Enable arithmetic: advertised income divided by the number of rooms, shown per room per week.12

One source for every row: SQM Research asking rents and prices, with gross yield worked out by Enable (weekly rent x 52 divided by asking price). Population growth is by state, from the ABS.12

What the numbers show: Melbourne's asking price is about 30% below Sydney's and its asking rent about 24% below. It is also lower than Brisbane and Perth. It is not the lowest: Adelaide, Canberra, Hobart and Darwin are cheaper by asking price. Melbourne's vacancy rate is the second highest of the eight, which is worth weighing alongside its yield.12

Households of one person, from the 2021 Census, the latest available. Melbourne has the largest number of the eight capitals.13

Auctions: 710 scheduled for 4 to 10 October 2026, 514 reported and 297 sold, a 58% preliminary clearance rate by Domain's count, against 69% at the same time last year.3

Asking rents (SQM, week ending 12 October): $692 a week across all dwellings, up 5.7% over 12 months; $826 for houses and $594 for units.1

Vacancy (August 2026): 1.78% in Melbourne against 1.35% nationally.1

Interest rates: the Reserve Bank lifted the cash rate target by 0.25 of a percentage point to 4.60% at its 29 September 2026 meeting.14

Starting tomorrow, 13 October 2026 (Consumer Affairs Victoria), bond claims: rental providers must notify the renter in advance of a claim on the bond and provide evidence to support it.9

Starting 13 October 2026, minimum standards records: rental providers or their agents must keep records showing the property met the rental minimum standards before it was advertised, offered or occupied, and give them to Consumer Affairs Victoria if asked.9

Starting 13 October 2026, gas and electrical safety checks: every two years by a qualified tradesperson for all rental agreements, whenever they began.9

Starting 13 October 2026, draught-proofing: a gasfitter's check within the six months before any draught-proofing work.9

Starting 13 October 2026, application fees: it becomes an offence to charge a renter a fee to apply.9

The 13 October items are written for rental providers and rental properties. If you operate a rooming house, check with Consumer Affairs Victoria how each applies to you.9

Coming from 1 March 2027: new minimum energy efficiency standards begin phasing in, covering heating, cooling, hot water, showerheads, ceiling insulation and draught-proofing.9

Already in effect: from 25 November 2025, a ban on no-fault evictions, 90 days' notice for rent increases, and a ban on all types of rental bidding. From 1 December 2025, for rooming houses, a fixed heater in each resident's room. From 31 March 2026, a ban on third-party fees for applications and rent payments. From 9 September 2026, renters can pay their bond directly to the Residential Tenancies Bond Authority.9

Residential fixed charge: the emergency services and volunteers fund charge is $139 for residential property from 1 July 2026.10

Vacant residential land tax: from 1 January 2026 there is an exemption for land with a residence that was under construction, being renovated or uninhabitable in the previous year. Owners notify the State Revenue Office by 15 February each year.10

Rooming houses: the State Revenue Office exempts rooming houses that meet its conditions, including current council registration, use primarily as low-cost accommodation for people on low incomes, room for four or more residents, mostly long-term residents, and weekly tariffs under a cap tied to the Age Pension rate. For 2026 that cap is $412.55 a week for a single room with lodging only.10

SDA: an exemption applies to SDA enrolled dwellings provided by an SDA provider, or a residential service for people with disabilities, and it continues during construction for up to two land tax years.10

Eligibility turns on the detail of each property. The State Revenue Office pages set out the evidence it asks for.

Contribution caps, 2026-27: concessional cap $32,500 (was $30,000). Non-concessional cap $130,000 (was $120,000). Carry-forward of unused concessional cap needs a total super balance under $500,000 at 30 June of the prior year.4

Division 296: law from the 2026-27 year. An additional 15% tax on the share of earnings that relates to a total super balance above $3 million, and a further 10% on the share that relates to a balance above $10 million. Assessments begin later in 2027-28.5

SMSF borrowing (LRBA): for arrangements entered into on or after 10 August 2026, limited recourse borrowing can only be used to acquire real property if it is business real property. Existing arrangements, their refinancing and contracts exchanged before 10 August are not affected.6

CGT and negative gearing: from 1 July 2027 the government will limit negative gearing to new residential properties, reintroduce cost base indexation and introduce a 30% minimum tax on real capital gains. Properties held before 7:30pm AEST on 12 May 2026 are grandfathered, which means the current rules continue to apply to them. The first stage is now law. Consultation on the second stage, including a draft definition of a new property (acquired within 24 months of the certificate of occupancy), closed on 21 August 2026, and no outcome was posted when we checked.7

Retirement living standards: ASFA's June quarter 2026 figures for ages 65 to 84: a single person needs about $56,166 a year for a comfortable lifestyle and $36,548 for a modest one. A couple needs about $78,998 comfortable and $52,690 modest.8

Land tax: see the SDA exemption above, which can matter to holding costs for an SDA house.10

Enable Group is a builder that works in this market every day. Before an investor commits, we can help with research: market reading like this edition, so decisions start from evidence.

Introductions: to finance brokers and property managers. Enable has no financial or commercial alignment with them.

Feasibility assessments: a look at a site to see what could be built on it, and whether the numbers are worth pursuing.

Building your own co-living home is another way into the market. What we have observed is that clients building with Enable have paid a lower cost than clients buying on the open market. A discovery session is where we look at your site and your numbers.