Mixed news for Canberra renters as units set new records

The latest rental price data from Domain shows the gap between house and unit rents in Canberra is closing.

According to the Domain Rent Report for the June 2025 quarter, house rents held steady at $700, marking the first quarter of stability in a year, while unit rents have edged up 0.9 per cent, or $5, to a record high of $580 per week.

Domain head of economics and research Dr Nicola Powell said this marked a third successive quarterly rise for units, the longest period of continuous growth since 2021.

“Although the pace of quarterly growth has halved compared to the previous quarter,” she said. “The continuous growth has pushed annual gains to 3.6 per cent or $20, the strongest since late 2022.

“This relative strength has squeezed the house-unit gap to almost a two-year low at 20.7 per cent, underscoring tenant demand for more affordable unit options.” 

The report revealed that quarterly growth in house rents is on par with the same time last year, marking the best June quarter result since 2022; however, rental growth is losing momentum. Annual gains flatlined at 2.2 per cent ($15) for three straight quarters – the same as last year but weaker than the steep growth seen in 2021-22.

Powell said Canberra’s vacancy rate tightened to 1.1 per cent in June, the lowest June reading since 2022.

“This is the tightest monthly figure since October 2022,” she said.

For the first time since 2019, combined capital house rents remained stable for four consecutive quarters, with annual growth also steady for the first time in five years.

Combined capital unit rents also held steady, marking the weakest June quarter in four years and slowing annual growth to a 3.5-year low.

With cost-of-living pressures squeezing budgets, many tenants have reached their affordability ceiling, curbing landlords’ ability to push asking rents higher. 

That pressure is redirecting demand toward smaller, more affordable dwellings, resulting in unit rents outpacing house rents in every city except Melbourne.