Relief for Canberra's tenants as rents hold steady

Canberra renters have been offered a reprieve from the rising cost of living, with the city’s rental market holding steady for a second consecutive quarter, according to the Domain Rent Report for the September quarter.

The report shows median weekly asking rents for houses finished the third quarter unchanged at $700. While this figure represents a 2.9 per cent increase compared to the same period a year ago, it confirms the recent trend of price stabilisation.

The unit market tells a similar story, with rents holding steady at $580 per week, despite a stronger annual gain of 5.5 per cent.

Regional variations paint a more nuanced picture of the ACT rental landscape. South Canberra emerged as the standout performer, with house rents surging 11.8 per cent annually to $950 per week, despite a 3.6 per cent quarterly decline from their June peak of $985.

Woden Valley also showed robust annual growth of 7 per cent, with house rents climbing to $760 weekly.

Gungahlin maintained a $700 weekly asking rent for houses with 2.9 per cent annual growth, while units in the area rose 1.8 per cent over the quarter to $560. The Molonglo Valley region recorded a 3.6 per cent quarterly increase for houses, reaching $725 a week.

In contrast, houses in North Canberra experienced a slight 0.7 per cent annual decline to $700 per week, while Tuggeranong remained the most affordable option to rent for both houses ($660) and units ($525).

Canberra’s vacancy rate increased to 1.3 per cent in September, the highest monthly figure since January 2025.

Domain chief of research and economics Dr Nicola Powell said the federal government’s revised five per cent deposit scheme may see more renters transition into home ownership, which could ease rental demand over time.

“However, vacancy rates below two per cent mean landlords could still hold the upper hand, keeping the market competitive and challenging,” she added.