Canberra house rents rise as unit market gains momentum

The nation’s capital has closed out 2025 with a renewed spark in the rental market, as a surge in apartment demand pushes unit rents to an all-time record.

According to the Domain Rent Report for the December 2025 quarter, Canberra’s rental landscape is shifting gears. While detached houses saw a modest return to growth, the unit sector recorded its strongest quarterly jump in more than four years.

Unit rents increased by 3.6 per cent over the quarter to a new peak of $580 per week. This represents a $20 increase to the median weekly rent – double the pace seen during the same period last year.

For those seeking backyards, the news is slightly more stable but still trending upward. House rents rose to $700 per week, up 1.4 per cent (or a $10 increase to the median weekly rent) after six months of stable growth. However, the report claims the lift marks a modest turnaround following an extended period of weakness, rather than the start of a renewed upswing. 

Units narrowed the price gap with houses to 20.7 per cent, its smallest in almost two years, as renters increasingly prioritise affordability. Canberra’s vacancy rate rose to 1.5 per cent, the highest monthly figure in a year, but the lowest December reading since 2021.

The Property Collective’s Hannah Gill said more properties typically become available in the December quarter, which leads to a minor rise in vacancy rates as the market adjusts.

“This then eases in the new year as workers return to the capital, and the market tightens again by February,” she said.