Rent prices soar in regional towns surrounding Canberra over the year: Domain report

The coronavirus pandemic has put upward pressure on regional areas across Canberra borders, with asking rent prices for houses soaring in the September quarter, compared to the same time a year ago, Domain data has revealed.

Since the pandemic hit earlier this year, Canberrans have opted for a lifestyle change at an affordable price, an incentive offered by regional areas including Yass Valley, Goulburn Mulwaree and Eurobodalla. 

According to the latest Domain Rent Report, Shoalhaven rent prices increased the most by 8.1 per cent over the year to a median of $500 per week. This was followed by the Snowy Monaro region, up 5.7 per cent over the year to $370 per week.

“This is what I would expect from these seasonal areas, particularly the Snowy Monaro region,” Domain senior research analyst Dr Nicola Powell said.

“Despite the fact that COVID has reduced the number of people allowed at some ski resorts, clearly there was still a strong demand for rentals during this period.”

There are also many prospective buyers who want to “try before they buy” – renting in a regional town for a period of time before deciding to move there permanently.

“I think that shift to regional areas was already there but has been accelerated by the current health pandemic,” Dr Powell said.

“Some people might be looking for a second base, a temporary escape from the city life and renting out a property in regional areas gives them that ability.

“I think these regional areas will be the real winners post-pandemic and will continue to see rent price growth moving forward.”

Property sales supervisor Stephen Sims of Coastal Properties Realty, who has permanent rental properties and holiday houses available for rent in the Shoalhaven region, said there had been pent-up demand for rentals in recent months.

“There are a lot more people who want to get out of high-density areas of the city and move to the coast and we’re getting a lot of inquiries for rental properties more now than ever,” Mr Sims said.

“We have about 25 inquiries for one property. Normally, we’d have only half a dozen.”

George Southwell of Ray White Rural Canberra and Yass said the demographic of applicants applying for rental properties were mostly professionals with secure jobs, relocating from Canberra.

“These are professionals who have the option of working from home three or four times a week and only need to commute to the capital every now and then … they just want a property with a little bit of acreage that is also very affordable,” Mr Southwell said.

“Yass rental properties, in particular, are filled with a tenant almost immediately. We’re receiving multiple applications and these properties are being filled within five days.”

Domain data showed Yass Valley had a median rent price growth of 3 per cent over the year to $425 per week.

Shoalhaven and the Snowy Monaro regions were the only areas that outpaced Canberra’s overall rent price performance, which increased by 5.5 per cent over the year to $580 per week.

“When you compare Sydney’s performance to the regional NSW patch, as well as Melbourne’s performance to regional Victoria, you’ll find that these regional areas are outperforming their major cities,” Dr Powell said.

“Whereas in Canberra, the fact that only two areas near the capital are outperforming Canberra’s growth goes to show how tight Canberra’s rental market is in comparison to other cities.”