Canberra remains the most expensive city in Australia to rent in as prices have shot up over the past 12 months, while new data reveals the suburbs with the best returns for property owners.
CoreLogic data found rental prices for ACT houses have increased 7.9 per cent in the past 12 months and 5.4 per cent over the year for units.
Over the past decade, there has been a more than 20 per cent surge in house rental prices and 13.6 per cent for units.
Canberra remains the most expensive capital city to rent a house and unit with a typical house setting a renter back about $668 per week and a unit $521 per week.
That is $22 higher than a typical Sydney house and just $3 more than unit.
Nationally, rental rates increased 6.6 per cent over the year which is the highest annual growth in dwelling rents since January 2009.
Gross rental yields across Canberra were 4.2 per cent in June as it, like all capital cities, recorded a lower yield than the previous quarter.
Lyons has been revealed as the highest-yielding suburb of Canberra to lease a unit, according to CoreLogic.
With a median unit price of $307,057, the median rent in Lyons is $437 and a gross rental yield of 6.9 per cent.
Gungahlin, Lyneham, Wright and Curtin fill out the top five suburbs as the highest-yielding for units with gross rental yields between 6.1 and 6.2 per cent.
Crace was a top performer in the past 12 months with a 9 per cent unit rent increase.
The gross rental yield is 6 per cent with a median rent of $503.
Palmerston was another top performer, with an 8.9 per cent jump over the year and gross yield of 5.2 per cent.
CoreLogic head of research Eliza Owen the rental market had been buoyed by the same factors which have led house prices to hit record highs.
"These factors include increased government stimulus through COVID-19, accumulated household savings through lockdown periods, the swift economic recovery seen as restrictions eased, and a lack of rental supply in some markets have also exacerbated rental price increases," she said.
Ms Owen said the high rental growth was unsustainable while incomes didn't raise to meet it.
"The result will likely be more subdued growth rates in the coming quarters, especially as investor participation trends higher, delivering more rental supply," she said.
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