Canberra's rents increase as national rates dive

Canberra's rents increase as national rates dive

Canberra was among the capital cities that recorded a rise in rents over the past year, up 1.9 per cent and now sitting at an average $505 per week.

Nationally, annual rental rates have dived, and are now 0.6 per cent lower than the year before. Weekly rents across capital cities also fell.

Canberra rents now sit at an average $505 per week.

Canberra rents now sit at an average $505 per week.Credit:Graham Tidy

Combined capital city rental rates are now $487 a week for houses and $469 for units, according to the CoreLogic June Rent Review.

In Canberra, the median rental rate is $516 for houses and $411 for units.


But while most capital cities saw a drop in rents, half recorded a rise.

These included Sydney (0.4 per cent), Melbourne (1.7 per cent), Hobart (4.6 per cent) and Canberra (1.9 per cent).

But CoreLogic research analyst Cameron Kusher said the large rental falls in Perth (8.6 per cent) and Darwin (16.2 per cent) pulled the combined capital average down.

"It is anticipated that the weakness in the rental market will persist, and where on an annual basis we will see rents fall even further over coming months," Mr Kusher said.

The June statistics show Canberra rental yields grew year on year, despite a 0.4 per cent drop in unit rental yields over the month.

The current yield for Canberra units is 5.1 per cent, the third highest of the capitals behind Hobart (5.4) and Brisbane (5.2), while for houses yield is 4 per cent.

Across the capital cities, gross rental yields were at record low levels.

"It's also likely that we'll see yields compress further over the coming months. However, this will be dependent on growth in home values as well as the direction of rental rates," Mr Kusher said.

"As a result, capital growth, which has slowed from its peak, will continue to be a much more important factor for property investors than rental returns."

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