Canberra remains the most expensive capital city in the country to rent, with median asking rents for houses again surging to an all-time high in the ACT.
The figures from Domain’s June quarter rent report reveal asking rents for houses in Canberra have increased $30 over the quarter and $60 over the year, now at $630 per week.
Unit rents remain the same as the first quarter of the year, at $500 a week, up $30 from this time last year.
The vacancy rate has remained steady over the quarter, at 0.7%.
Domain’s senior research analyst, Dr Nicola Powell, said stable prices for a unit coupled with the sharp rise in house rental prices have pushed the price gap between renting a unit and a house to an “all time high”.
“Tenants no longer able to afford renting a house could be financially forced to opt for a unit, easing rental pressure on houses but shifting it to units,” she said.
Dr Powell said the rise in prices is unsustainable, with weak growth in wages that cannot support ongoing rental increases.
The ACT Council of Social Service (ACTCOSS) CEO Dr Emma Campbell said last week the ACT has the highest rate of rental stress among lower income private rental household of any jurisdiction in Australia.
In a budget submission, ACTCOSS outlined their concerns about the Territory’s housing crisis, calling on the ACT Government to address the shortfall of community housing dwellings and urgently deliver the 600 additional affordable rentals committed to in the Parliamentary Agreement between ACT Labor and the Greens.
The ACT Government last week abolished stamp duty on off-plan townhouse and apartment purchases under $500,000, in a bid to boost stocks of affordable housing options in the Territory.
Master Builders ACT said the move should be extended to investors to ensure more affordable rentals in Canberra.
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