One capital city just got cheaper for rent in 2024 - but sorry, it's not Sydney

As rental prices rocketed again to a record high across Australia, with an aggression not seen in almost two decades, one capital city got cheaper.

Sorry, it’s not Sydney.

In Canberra, weekly rent prices – landing at $685 – declined 0.7 per cent in March this year compared to March 2023, Domain’s fresh data shows. It was the only city to go backwards on price for under-pressure tenants.

That said, the figure is only $5 off the record sum that Canberra renters were paying in March last year.

The national median rental price has hit a record $630 per week, against $570 a year ago, Domain’s latest Rent Report (March 2024) reveals.

House rental prices across the combined capitals jumped five per cent ($60 per week) in the March quarter, and record sums were achieved in Sydney, Melbourne, Brisbane, Adelaide and Perth.

This new national figure of $630 represents the steepest quarterly gain in 17 years and the second-\ highest on record.

Darwin and Hobart’s house rental prices did not move over the quarter or annually. Records were also clocked across the unit market. To rent a unit (combined capitals price) is only $10 a week cheaper than a house, putting the squeeze on what once was the more affordable option for tenants.

Domain’s chief of economics and research Dr Nicola Powell says Canberra has more supply of properties, and negative migration has helped.

“Canberra has had better rental conditions and technically it was the only capital city to enter the change over phase with a balanced market,” she says. 

“Supply has been a lot better and population dynamics have been slightly different also. Canberra has been losing people to other states and territories more than receiving, and that has weighed into rental demand.” 

Hobart and Darwin held steady, with no change in house rental prices over the three months to March, or when measured annually.

Domain’s chief of research and economics Dr Nicola Powell says the lift to record sums is in line with the seasonal trend of renting getting more expensive at the start of the year, when tenants are hunting among limited stock.

Dr Powell said in the report that conditions could be about to turn.

“While Australia’s perilous rental market appears entrenched in a never-ending run of rent rises, we remain optimistic that a tipping point will be reached in 2024,” she said.

“Some sub-markets will operate with more balance and rent growth will slow — some areas already show these signs. Currently, we are seeing the number of prospective tenants per rental listing ease, suggesting some pressure has been lifted. This could be an early indicator of an increase in vacancy rates sometime this year.

“Also, international student visa applications have turned a corner and started to fall for the first time in more than two years, population growth is likely to have peaked, and the federal government has introduced a migration strategy that will slow population growth.

“Homeownership is also at the forefront with incentives in place (such as Queensland doubling the first-home buyer grant and the federal government’s Help to Buy shared equity scheme), which will help transition some to being owners or fast-track others to a more affordable purchase.”