Australian residential rents may rise by more than 10% this year as landlords pass on higher home prices and increased borrowing costs to tenants, Australian Property Monitors said.

Average rents rose 1.5% in the first quarter, with Darwin houses having the biggest average gain of about 10% from the previous quarter, while Melbourne rents rose for the first quarter in 18 months, APM said in an e-mailed report. Sydney houses and units stayed flat, APM said.