Canberra house rents hit record high as strongest June-quarter growth in eight years returns

Canberra house rents climbed 1.4 per cent, or $10, over the June 2026 quarter to a record high of $710 per week, according to the Domain Rent Report June 2026.

The report said the increase marks the strongest June-quarter outcome in eight years. However, it reflects a rebound from softer conditions earlier in the year rather than a sustained acceleration. Annual growth has doubled from the previous quarter to 2.9 per cent ($20), but remains below recent peaks, highlighting the uneven nature of rental trends.

Canberra unit rents were unchanged for a second consecutive quarter at a record $580 per week, marking the weakest June-quarter outcome in two years. Annual growth has slowed sharply to 1.8 per cent ($10), halving from both the previous quarter and a year ago. The back-to-back flat results point to a clear loss of momentum, with the unit market leading the broader slowdown.

Canberra’s vacancy rate rose to 1.2 per cent in June, above the level recorded at the same time last year, indicating an increase in available rental supply.

Combined capital-city house rents re-accelerated in the June 2026 quarter, rising by $20 and lifting annual growth to its strongest level in almost two years. Unit rents rose by $5 over the same period.

Domain chief residential economist Dr Nicola Powell said the increase was both stronger than seasonal norms and relatively abrupt in some cities, pointing to a step change in pricing behaviour rather than a gradual tightening of market conditions.

“Importantly, the acceleration was concentrated in houses – most clearly in Sydney, Brisbane, Canberra and Darwin – while unit markets picked up only in Sydney and Darwin, with most other capitals showing little evidence of acceleration. This points to city-specific pricing dynamics rather than a single national houses-versus-units story.

“The timing of the acceleration is notable. As greater clarity emerged around proposed housing investment policy changes during April and May, the data suggest landlords moved quickly to lift asking rents where market conditions allowed.

“Higher borrowing costs following recent interest rate increases may have also contributed, with investors facing greater pressure to offset rising holding costs. Rather than gradually feeding through over time, rental increases were brought forward, suggesting owners are positioning for tighter supply conditions and adjusting pricing expectations accordingly,” Powell said.