Canberra’s vacancy rate hits six-month high as house rents return to record prices

It’s mixed news for Canberra’s rental market with house rents up and unit rents down for the first time in years, according to the Domain Rental Report for the June quarter.

Domain chief of research and economics Dr Nicola Powell said house rents rose for a third consecutive quarter and were back at a record median of $690 per week, which was last seen in December 2022.

“This consistent growth has not been seen for two years and has pushed annual gains into positive territory for the first time in 15 months,” she said.

According to Powell, it was a different story for unit rents which dipped by $10 (or 1.8 per cent) to $560 per week from the previous quarter’s high.

“Unit rents rose 1.8 per cent to $570 per week in the March quarter before decreasing to the current price,” she said.

“This is the first quarterly decline in four years and makes Canberra one of only two capital cities to fall, along with Darwin.

“In fact, it is the weakest outcome over a June quarter since 2020.”

The Domain Rental Report found Canberra’s vacancy rate had consistently improved throughout 2024, reaching a six-month high of 1.7 per cent in June.

It is the highest of the capital cities and offers the most favourable conditions for tenants, with rental stock elevated historically.

Powell said that although vacancy rates typically rose during the winter months, this trend was helping to alleviate rental pressures and slow the growth of rental prices.

Overall, the combined house rent for the capital cities rose 11.1 per cent to $650 a week over the year, while unit prices increased 8.6 per cent to $630 a week.