With Canberra’s median weekly asking rents surging to an all-time high and stocks dropping to a five-year low, renters in the nation’s capital are feeling the pinch.
Domain data shows annual growth in asking rents across all ACT districts in both the housing and unit markets.
The inner south led the charge recording an astounding 10.3 per cent increase for houses over the quarter, lifting the median asking rent to $750 per week. Domain chief data scientist Dr Nicola Powell said the growth in the rental market was unusual for the off-peak season.
“I think the inner south’s quarterly growth is quite surprising, as typically the March quarter records the strongest growth in rents because it is the busiest time of the year,” she said.
“More than a year ago, the inner south rental market went through a price moderation so it’s likely a combination of a correction and the quality of stock.”
Distinct Property Management director Chris Scullin said although rents in the inner south had grown “substantially”, he had also seen increases in far south suburbs such as Gordon, where the median asking rent was $450 per week.
Despite this, Gordon remains one of the best-value suburbs in which to rent a house. Cook, Florey, Macgregor and Page all recorded a median asking rent of $450, with Holt the most affordable suburb at $440 per week.
Mr Scullin said competition for houses was becoming fierce in all regions across Canberra.
“We’re seeing a large increase in the number of people coming to open homes, and a lot more competition for properties, particularly houses,” he said.
“We’re also seeing a big jump in the weekly asking rent when a house becomes vacant and is readvertised.
“There’s been an increase in the number of share homes to try offset higher rental costs.”
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The inner south region also recorded the highest median asking rent in the unit market at $510 per week, followed by the Inner North at $465 and Weston Creek* at $440.
Lyons offers the best value to rent a unit in Canberra at $348 per week, followed by Curtin at $350. Woden Valley’s median asking rent is $395 – the lowest priced region within the territory’s borders.
However, across the border in Queanbeyan, median weekly asking rents for units are $280, representing a growth of 12 per cent year-on-year.
“The double digit growth in Queanbeyan is a reflection of the fact it is coming off a lower baseline, but it could also be that Queanbeyan offers such great affordability compared to any other region in Canberra,” said Dr Powell.
Investors in Belconnen’s unit market are reaping the highest gross rental yields in the region at 6.30 per cent.
In the housing market, Queanbeyan offers the best yield at 4.79 per cent, however, there is a recorded annual decline in the rental yields for houses across all regions besides Belconnen.
“The decline in rental yields for houses indicates the purchase price is growing at a greater pace than the rental price so there’s a disconnect there,” added Dr Powell.
Most expensive suburb: Bruce ($600)
Best value suburb: Holt ($440)
Most expensive suburb: Lawson ($490)
Best value suburb: Belconnen and Bruce ($400)
Most expensive suburb: Nicholls ($598)
Best value suburb: Palmerston ($460)
Most expensive suburb: Ngunnawal ($415)
Best value suburb: Harrison ($360)
Most expensive suburb: Campbell ($780)
Best value suburb: Watson ($500)
Most expensive suburb: City ($550)
Best value suburb: Watson ($390)
Most expensive suburb: Yarralumla ($820)
Best value suburb: Narrabundah ($555)
Most expensive suburb: Forrest ($560)
Best value suburb: Narrabundah ($450)
Most expensive suburb: Wanniassa ($550)
Best value suburb: Gordon ($450)
Most expensive suburb: Curtin ($610)
Best value suburb: Hughes ($560)
Most expensive suburb: Garran ($540)
Best value suburb: Lyons ($248)
* Suburb data not statistically reliable for Weston Creek
**Greenway is the only suburb in Tuggeranong where a median unit weekly asking rent can be determined