Snapshot: Canberra vacancy rates still tight for tenants

Rental vacancy rates in Canberra remained tight over July with higher demand for rental properties reflecting the usual seasonal surge at the beginning of the new financial year.

The house rental vacancy rate remained at 1 per cent with unit vacancies falling from 2 per cent to 1.9 per cent. Overall dwelling vacancy rates were steady at 1.3 per cent.

The Canberra rental market has generally tightened over the past year with overall home vacancies falling steeply from the 2.2 per cent reported over July 2015.

The Canberra rental market remains highly competitive for tenants with only Hobart recording a lower rate for houses at 0.6 per cent and also lower for units at 1.2 per cent.

Canberra Central reported the highest number of house vacancies over July of all the Canberra regions with a median asking rent of $558 with next highest for vacancies Gungahlin  with rent at $490 followed by Belconnen $435, Tuggeranong $450, Woden Valley $488 and Weston Creek $473.

Canberra Central also reported the highest number of unit vacancies over July with a median asking rent of $450 followed by Belconnen $373, Woden Valley $360, Gungahlin $390, Tuggeranong $410 and Weston Creek $398.

Ngunnawal was the Canberra suburb with the highest number of house rental vacancies reported over July with a median rental of $410. Next highest for vacancies was Palmerston with a rent of $430 followed by Harrison $593, Deakin $850 and Gungahlin $550.

The Canberra suburb with the highest number of unit vacancies reported over July was Kingston with a median rent of $490, with next highest Braddon and a rent of $450 followed by Turner $435, the City $578 and Bruce $380.

With tight vacancy rates putting upward pressure on rents and a clear shortage of rental properties, housing affordability and accessibility remains a key issue for the Canberra rental market.

Dr Andrew Wilson is Domain Group Chief Economist Twitter@DocAndrewWilson