Home rental vacancy rates fall in Canberra

Vacancy rates for the Canberra home rental market tightened over February, reflecting the seasonal impact of increased demand for rental properties following the holiday period.

The vacancy rate for houses fell to just 0.9 per cent over the month, due to an ongoing underlying shortage of homes for rent. The February rate is now also below the 1 per cent recorded over February last year, indicating a downward trend.

Canberra now has the second-lowest vacancy rate for houses of all the capitals, with only Hobart (0.8 per cent) recording a lower rate.

Rental vacancy rates for Canberra units also tightened over February, falling sharply from 2.3 per cent to just 1.5 per cent. Despite recent high levels of new apartment construction, strong underlying demand for rental properties has reduced vacancies for units – down significantly from last February (2.9 per cent).

Similar to houses, the Canberra unit vacancy rate is now above only Hobart, at 1.4 per cent, of all the capitals.

The Canberra rental market presents to a challenge to tenants, with a clear shortage of available homes to rent emerging. The total vacancy rate now stands at just 1.1 per cent – well below last February (1.6 per cent).

Ngunnawal was the Canberra suburb with the highest house rental vacancies over February with a median asking weekly rent of $395, followed by Kambah ($460), Casey ($460), Gungahlin ($480) and Watson ($440).

Kingston reported the most unit vacancies over February, with a median asking weekly rent of $490, followed by the next highest, Belconnen ($380), City ($540), Bruce ($393) and Braddon ($420).

Dr Andrew Wilson is Domain Group chief economist. Twitter@DocAndrewWilson – My Property, 2UE, Fridays, 2-3pm, Saturdays 12.30-1pm