The three Canberra suburbs where rent has increased by more than 20 per cent

Canberra rental prices have hit an all-time high, with three suburbs, in particular, recording annual growth rates of 20 per cent or more, according to new data.

The largest rent increase was felt in the suburb of Wright in Weston Creek, where the median asking price for a house went up by 23.7 per cent year-on-year to $810 a week. 

Pearce in Woden Valley followed suit, up 21 per cent year-on-year to $750 a week, and Higgins in Belconnen was also up 20 per cent over the same period to $660 a week for a house, the latest Domain Rent Report revealed.

The report also showed that, while Canberra’s overall median asking price maintained the city’s position as the most expensive in which to rent a house – up 3 per cent year-on-year to $690 a week – the pace of growth has slowed.

“[To record] a 20 per cent increase is a significant increase,” said Domain chief of research and economics Dr Nicola Powell.

While those three suburbs recorded growth above 20 per cent, all but two suburbs across the capital recorded some increase in their rent prices, from as little as 0.7 per cent year-on-year.

“All suburbs are performing slightly differently … and I think what that showcases is that it’s not a uniform rental market across Canberra,” Powell said. “That type of rental growth won’t stick around because it’s such a significant increase in 12 months.”

The top-performing suburbs, while recording extreme price growth, had varying numbers of rental listings on the market. Wright had 54 rentals on the market, Pearce had 39 and Higgins had 32.

“Six months ago there may have been no properties for rent [in these areas]” said Hayman Partners business development manager Emily Antill.

But the tide has turned for prospective tenants, Antill added.

“I believe [the rental market] has returned to some degree of a normal market but we have to work hard to get the right tenants for our landlords and give tenants more choice,” she said.

The rental market is set to enter a busy period with an influx of international and domestic students looking for rentals near universities, as well as defence workers and families relocating to the capital.

The Property Collective property manager Renee Boyle said the Belconnen region, including suburbs such as Higgins, Lawson and Weetangera, was a popular hotspot for new Canberrans.

“The Belconnen region, in particular, is thriving,” she said. “​We go through dips and surges in the rental market, but I think at the moment we’re still seeing lots of activity.

“I managed a precinct in Belconnen and we got at least 20 groups through for each open-home apartment,” she said.

Powell predicted Canberra’s rental prices would change as the year goes on should vacancy rates continue to rise, after recording a three-year high at 1.7 per cent.

“We might see more suburbs being pulled into the more affordable category as time ticks on,” she said.