Canberra rents hold at record highs as vacancy rate hits lowest level in four years

Canberra’s rental market is tightening sharply, but renters are yet to feel the pinch in their weekly payments as prices hold flat at record highs despite a significant drop in available properties.

The latest Domain Rent Report, released on Thursday, reveals median house and unit rents in the capital both held steady in the March quarter at $700 and $580 a week, respectively. While these figures remain at record highs – up 1.4 per cent and 3.6 per cent respectively from a year ago – they remain unchanged from the December quarter.

The standout metric from the report is the city’s vacancy rate, which plummeted to 0.8 per cent in March. This marks a steep decline from 1.5 per cent in December and represents the lowest level recorded since June 2022.

 Domain chief of research and economics Dr Nicola Powell said the gap between supply conditions and rent movements reflected a lag between tightening availability and price growth. 

“Despite this significant reduction in available rental stock, rents have remained flat,” she said. “Affordability is likely limiting the pass-through to rents, even as conditions tighten.”

While units led a modest rebound at the end of 2025, Powell noted that momentum had since eased, with recent gains failing to carry through into early 2026. 

“The lack of further growth suggests the earlier increase has not translated into sustained momentum, with rental conditions remaining subdued despite signs of tightening supply,” she said.

However, property managers are already seeing the tighter conditions play out on the ground. Ellie Brault from Jonny Warren Properties said well-priced homes were attracting strong competition.

$780 Per Week

1 Shiels Place, Curtin ACT 2605

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“We’re seeing more enquiry and a lot more activity, particularly for affordably priced rentals in popular locations,” she said. “A current listing in Curtin has attracted 38 registered parties already.”

Across the capital’s regions, South Canberra continues to command the highest house rents at $875 per week, sitting well above the city-wide median. However, it was the only district to record a fall over both the quarter and the year, dropping 1.7 per cent on both measures.

North Canberra is the next most expensive district for houses at $750 per week, followed by Molonglo and Woden Valley, which both sit at $730.

The report shows the latter regions are leading the pack for annual growth in house rents, both jumping 4.3 per cent over the year. Belconnen followed with a 3.1 per cent increase, while Gungahlin rose by 2.9 per cent.

$565 per week

122/8 Veryard Lane, Belconnen ACT 2617

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Tuggeranong remains the most affordable house market in the ACT at $660 a week, recording modest annual growth of 1.5 per cent.

The unit market tells a slightly different story, with Gungahlin recording the strongest annual rent growth in the ACT at 6.8 per cent. Belconnen and Woden Valley followed with increases of 5.8 per cent and 3.8 per cent, respectively.

South Canberra is the most expensive region for unit rents at $620 a week, closely followed by North Canberra at $610, while Tuggeranong remains the most affordable option for unit renters at $520 per week.