Weekly snapshot: Rental market remains competitive

Rental vacancy rates in Canberra eased slightly over April although the improvement may reflect seasonal factors with Easter, Anzac Day and school holidays distracting demand from potential tenants.

The house rental vacancy rate increased from a very low 0.9 per cent to 1.0 per cent with unit vacancies rising from 1.5 per cent to 1.6 per cent. Overall, dwelling vacancy rates increased from 1.1 per cent to 1.2 per cent.

The Canberra rental market has generally tightened over the past year with unit vacancies falling steeply from the 2.8 per cent reported over April 2015.

Although vacancy rates improved over the month, the Canberra rental market remains highly competitive for tenants with only Hobart recording a lower rate for houses at 0.7 per cent. Canberra and Hobart have the equal lowest vacancy rates of all the capitals for units at 1.6 per cent.

Belconnen reported the highest number of house vacancies over April of all the Canberra regions with 85 and a median asking rent of $420 followed by Gungahlin 83 ($490), Canberra Central 71 ($595), Tuggeranong 57 ($450), Woden Valley 41 ($480) and Weston Creek 24 ($473).

Canberra Central reported the highest number of unit vacancies over April with 167 and a median asking rent of $440 followed by Belconnen 58 ($370), Gungahlin 36 ($360), Woden Valley 30 ($360), Tuggeranong 16 ($390) and Weston Creek 9 ($415).

Ngunnawal was the Canberra suburb with the highest house vacancies reported over April with 16 and a median asking rental of $400, followed by Kambah 15 ($450) and Bonner 11 ($450).

Kingston was the Canberra suburb with the highest unit vacancies reported over April with 29 and a median asking rental of $450, followed by City 21 ($530) and Belconnen 20 ($388).

With tight vacancy rates putting upward pressure on rents and a clear shortage of rental properties, housing affordability and accessibility remains a key issue for the Canberra rental market.

Chief Economist Twitter@DocAndrewWilson – My Property 2UE Fridays, 2pm-3pm, Saturdays, 12.30pm-1pm