Canberra takes title of the most expensive rental market

According to Domain’s research, while Canberra remains the most expensive capital to rent a house, this is the first time in a decade Canberra has the highest unit rents of all the capitals.

Looking at the vacancy rate, Domain pointed out that while it did lift in December, it remains below that seen this time last year.

“The estimated number of vacant rentals is 24 per cent lower annually. This lack of vacant rentals will continue to drive up rent prices,” Domain said. 

The lure of Canberra is becoming increasingly evident, with low COVID-19 cases throughout the pandemic, employment opportunities and a lifestyle on offer.

Having a strong public service employment base has meant minor job losses compared with that seen in the private sector. This also meant the territory has been placed better economically, buoyed by the public sector and industries reliant on government spending.

Darwin also stood out at the end of 2020, after posting a surge in house rents by $60 over the quarter to $550 a week and a $30 increase in unit rents to $420 a week, the highest gains since the lead-up to the 2013 peak.

This put Darwin among the strongest rental markets of all the capitals in 2020, a stark contrast following roughly six years of declining asking rents. Despite this, house rents remain 21 per cent, and unit rents 26 per cent, below the 2013 highs.

On the other end of the table, Adelaide emerged as the most affordable capital city despite a record-high climb in house and unit asking rents.

While Adelaide’s asking rents reached record highs by the end of 2020, prices now stand at $410 per week for a house and $340 per week for a unit. According to Domain, if borders remain open, Adelaide will continue to benefit from a resurgence in domestic travel, which will drive demand for short-term leases – this could tighten the long-term rental market further.