- As at February 2023, 1.8% of total rentals are available on the market
- In Canberra, houses have been the traditional investor stock
- Recently investor activity has pivoted with the spotlight shining on unit investment
In line with nationwide trends, rentals in the ACT are hard to come by, but Herron Todd White‘s latest Month in Review report reveals that shifting investor activity in the territory means types of rental offerings are changing.
Data from SQM Research reveals that while the rental market is tight, vacancy rates in Canberra have been in recovery since March 2022. As at February 2023, 1.8% of total rentals are available on the market.
In the same month, the national vacancy rate was at 1%.
Rental Vacancy Canberra
Commenting in Herron Todd White‘s report, Assistant Valuer, Kush Sen says that like most other cities around Australia, Canberra’s rental prices are high and the supply of rentals is low.
“It is typically hard to find rentals in Canberra however throughout the past year, it has been even more difficult.”
Herron Todd White Assistant Valuer, Kush Sen
Sen explains that this is due to supply struggling to meet demand, pushing prices up.
Asking Rents Canberra
Shifting investor activity
Sen says that in the past six months investor activity has shifted slightly.
“Like most property buyers, investors in the past six months have been less active in the market due to the interest rate hikes which have caused markets to slow.”
“In Canberra, houses have been the traditional investor stock as there was a lack of apartments.”
Recently investor activity has pivoted with the spotlight shining on unit investment according to the Month in Review report. Numerous new unit developments have come into the market, with many being bought by investors and placed on the rental market.
Sen explains that the housing market in Canberra is primarily driven by capital growth, owing to its relatively stable property market compared to other regions in Australia.
By contrast, Sen says investment in the apartment market is driven by rental returns.
“With the current influx of new apartment developments, apartments have been going up in value at a slower rate than the house and townhouse market.”
Rental Yield Canberra
