24-07-2025
Canberra's rent hikes are losing pace but some renters say the market's still pricey and competitive
International student Gabriel Batholazzi plans to move in with his partner but Canberra's rental market has become a less-than-romantic hurdle in his love story.
"It was quite exciting but then when we started looking, going on the websites, checking … and it starts to be more interesting and daunting," the postdoctoral researcher said.
New rental data from property analysts Cotality, formerly CoreLogic, has shown Canberra is the fourth most expensive Australian capital city in which to rent.
Three years ago it was the most expensive.
Canberra's median weekly rental price is now $679 — that's compared to almost $800 in Sydney, which was the most expensive city for renters, before Perth and Brisbane.
Canberra experienced the slowest quarterly growth in rental values in the country, and the lowest 12-month increase in rent prices for units.
But that comes after years of significant jumps, with Canberra's five-year median rent prices increasing 18 per cent for houses and 20 per cent for units.
Mr Batholazzi said news of the slowed growth was cold comfort for tenants.
Mr Batholazzi said he and his partner were organised and had created a calendar of inspections "because we're not going to get the first place, so we need to look for many".
Real Estate Institute of the ACT Chief Executive Maria Edwards said recent changes in Canberra's rental market were due to supply and demand, as well as government policy.
"Over the past three years, over 75 per cent of the dwellings that have been in progress or completed have been high density apartments," she explained.
"And the rents on those are generally lower and that brings down the average cost of renting a property in the ACT.
She said that was coupled with negative net interstate migration and lowering overseas migration.
"There's also government policy that restricts rent increases on existing tenants in the ACT. That's having an effect as well."
The ACT government has restricted rent increases to once a year with eight weeks' notice, capped at 10 per cent above the increase to the Consumer Price Index.
She said many landlords were under financial stress and some had sold up.
"There's also been a real slow down in the sales prices of apartments because there are so many available," Ms Edwards said.
"So, there are actually owners who have bought apartments 10 years ago who will not make a profit if they sell now."
