Unit rents hit record high in Canberra while houses stabilise

Canberra unit rents have hit a record high while housing rents are still down on record levels of 2023, the Domain Rent Report for the March quarter has found.

Domain head of research and economics Dr Nicola Powell said Canberra was the only city in the country where house rents had fallen annually, although the rate of decline continued to ease.

House and unit rents increased for a second consecutive quarter – persistent growth not seen in almost two years.

The city’s median house rent is $685 a week, only $5 lower than the last high of March 2023.

On the other hand, Canberra’s median unit rental price is at a record high of $570 per week.

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In the March quarter, it rose 1.8 per cent – the same as the previous quarter – providing consistent growth that has accelerated annual gains to their highest since December 2022.

Canberra is now the third-most expensive city in which to rent a unit, after being overtaken by Brisbane.

Canberra’s vacancy rate has fallen to 1.4 per cent from its December record high of 2 per cent but remains the highest of the capital cities. The number of properties for rent is elevated compared to historical levels, providing more favourable conditions for prospective tenants.

Australia’s rental market experienced a re-acceleration of rental growth over the first quarter of 2024, leading to higher asking rents.

The median house rental price in the combined capitals surged 5 per cent (or $30) in the last quarter – the steepest quarterly gain in 17 years and the second-highest on record.

While rental conditions displayed the seasonal strength that tends to impact the first quarter of the year, the supply-demand imbalance is still clearly placing pressure on rents.

The re-acceleration of house rental price growth in the combined capitals may not just be the typical seasonally strong period, as annual gains have momentum and quarterly growth is about a third higher than the March quarter of 2023.