It’s almost $700 a week to rent a house in Canberra, $460 in Melbourne

With the risk of sounding like a broken record, Domain’s latest Quarterly Rental Report released today shows Canberra has once again held onto its title as the most expensive capital city rental market in Australia.

Two new records have been set in Canberra this June Quarter – houses have hit a median weekly cost of $690, and units have hit a median of $550 per week.

Melbourne has remained Australia’s most affordable capital city to rent a house, although it has increased by 2.2 per cent over the quarter to $460 per week.

Domain’s Chief of Economics and Research, Dr Nicola Powell, says Canberra remains a landlord’s market with new record high house and unit rental prices.

“Canberra remains the most expensive capital city to rent in Australia, which has been held by Canberra for the past four years for houses, and for almost two years for units,” says Dr Powell.

“Focusing on the price side, this is the longest running streak of rising asking rents in Canberra’s history – house prices have risen seven quarters in a row, and units have risen eight quarters in a row.

“Tenants have been facing rising rents for a while now, along with competitive conditions.”

Although, Dr Powell did shed a positive light on Canberra’s bleak rental market, with a “little, just a little” bit more choice in rental supply.

“Canberra’s vacancy rate sits at 0.8, which means that there is very little stock for tenants out there. But the vacancy rate has hit a six-month high and is moving away from a record low,” she says.

Director of Better Renting, Joel Dignam, says with the rental prices of houses in Canberra being the most expensive in the country for four years now, the ACT Government could be doing more on the issue. File image: Kerrie Brewer.

“So, we’re starting to see a slight shift in supply-and-demand dynamics, and there seems to be a little bit – just a little bit – more choice.

“The number of views per rental listing also gives us the potential number of renters per listing, which has dropped 19 per cent over the past year. While conditions remain competitive, it has eased since this time last year.

“For the first time in more than a year, gross rental yields have improved, which tells us rents are rising faster than purchasing prices, which is a big shift. For a long period of time, yields were deteriorating, and we’re seeing the reverse now.”

Director of Better Renting, Joel Dignam, says the ACT Government could be doing a lot more to help Canberra renters with these consistent price hikes.

“Firstly, what we are seeing with these rent increases are forced moves. It sucks when you have to keep paying more rent, and it sucks when you can’t pay and are forced to move,” says Mr Dignam.

“People are moving out to avoid rent increases and are being kicked out so landlords can cash in on rising rents. And it’s not just an affordability issue – forcing people to move is disruptive to their lives.

“There’s a lot more the government can do on this issue. Some of what’s happening is good, but protections around rent increases are woefully inadequate. Renters can get an increase of 10 per cent, and there’s nothing they can do about it.

“The government can intervene to blunt some of the impact,” Mr Dignam says.