'Everyone’s circumstances are different': Why it's not all doom and gloom for Canberra renters

Canberra’s booming property prices have forced more aspiring house hunters rent for much longer but it’s not all doom and gloom, industry experts say.

The Australian Centre for Housing Research’s national Rental Housing Conditions Dataset – which surveyed renters from every state and territory – showed that, for the first time, renters comprise a bigger proportion of the housing market than home owners.

“We’ve seen a rental boom in Australia in recent years,” says Australian Centre for Housing Research director Emma Baker.

“For a long time, renting was traditionally regarded as transitional rather than a lifetime tenure but our data shows that not all renters aspire to be an owner-occupier for many reasons.”

Ms Baker says some tenants would rather rent in the suburb of their choice or live in a good school catchment area, paying a feasible weekly amount rather than a mortgage.

“Some people are strategic and would rather purchase in a more affordable area but rent in another city. Everyone’s circumstances are different,” she says. 

This is despite the capital’s increasing rental prices for both houses and units.

In Canberra, the median asking rent for a house in the capital hit an eye-watering milestone of $700 per week, up 3.7 per cent over the quarter and 16.7 per cent year-on-year, according to the latest Domain Rent Report. This was the steepest annual growth in 15 years.

Meanwhile, the median asking rent for a unit also hit a record $540 per week, up 1.9 per cent over the quarter and 8 per cent year-on-year. Canberra is the most expensive city in which to rent a house and unit.

The Agency Canberra’s property management lead Shann Howman says Canberra’s high rental prices were no surprise, considering it was backed by a “strong public servant workforce”.

“Canberra’s rental market has been brutally tested amid COVID, particularly in the inner-city and Gungahlin regions but demand has far outweighed any potential concerns from the pandemic,” he says.

“The tram line that runs from Gungahlin to the city has been a popular reason for tenants to move there or remain in the area.”

Domain data shows the median asking price for a house in Gungahlin was $690 a week, and for a unit, it was $498. In the Inner North, the median asking price for a house and unit was $750 and $550 a week, respectively.

In the Inner South, the median asking rent was $878 a week for a house, and $560 per week for a unit.

“I don’t see any dramatic drops in the city’s asking price for rentals but I do see it levelling out to some extent,” Howman says.