Canberra unit rental supply drops by more than 30 per cent

Canberra’s rental market remains tight, as new data shows the total unit rental supply down year-on-year by 32 per cent.

In the latest Domain data for July, the number of units listed for rent was 852, with a new supply of 420.

Independent Property Group head of property management growth Grace Hooper says there’s a strong demand for rental units, particularly around the town centres.

“A lot of people comment on the amount of construction at the moment, and while that’s certainly the case it’s not contributing to the rental market,” she says.

“People are wanting to rent newer apartments and while there are a lot of them being built at the moment, there’s not a lot being completed so what is coming to market is being absorbed quite quickly.”

The recent Domain State of the Market Rental Report June 2018 shows Canberra’s median weekly unit rent is at all-time high of $450.

House rents have also increased to a record $550 and are on par with Sydney as the most expensive in the nation.

The total house rental supply was also down 13.9 per cent year-on-year in July. There were a total of 794 listed for rent over the month, with a new supply of 365.

“I’ve been a property manager for 10 years and this is one of the tightest rental markets I have worked in,” says Ms Hooper.

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While supply decreased in the rental market, the total sales supply was up for both houses and units year-on-year.

The total sales supply of houses was 1085 with a new supply of 297.

Queanbeyan had the biggest yearly increase in the number of new listings, up 27.6 per cent. But the number of new listings significantly declined in Molonglo Valley and Weston Creek, down 29.7 per cent and 29.9 per cent, respectively.

In the unit market, total supply was 1214 with a new supply of 269. Woden Valley had the biggest year-on-year increase of new listings at 48.9 per cent. No regions declined.

Over the month, the auction clearance rate was also down year-on-year by 14 per cent. The overall clearance rate for July was 60 per cent.

The lowest Saturday clearance rate of the year occurred at the beginning of the month.

Tuggeranong recorded the lowest clearance rate at 43 per cent and Belconnen recorded the highest at 74 per cent.