After a period that was described as "exceptionally busy" for property in Australia, which occurred during the typically tranquil Christmas season, it appears that Canberra's highly competitive rental market has reached new heights.

Due to the low vacancy rate in the nation's capital, which is less than one percent, there were significant wait times at open inspections over the weekend. An investment property advisor stated that demand continued to exceed availability.

According to Hannah Gill, a representative from the Real Estate Institute of the ACT, "Average prices continue to grow both for houses and for flats, and in fact, Canberra is the most expensive city to rent property in Australia."

"This is a major pressure point for our community because it demonstrates that there is a real dearth of affordable housing and housing that is suitable for the purpose of meeting the demand," said the mayor.

According to the most recent findings studied by an investment property advisor from CoreLogic, rental prices in Canberra continue to be significantly higher than those in any other part of the country.



During the December quarter, the median price of houses increased by 2.6% points to reach $714 per week, while the median price of flats increased by 1.2% points to reach $541p/w.

Ms Gill stated that “we have been witnessing this same kind of strain on home affordability and supply now for two or three years,” adding that “it is clearly not new.”

But what is new, according to Ms Gill, is that demand did not drop over Christmas and New Year’s, and the open home crowds that are typically reserved for December and January are turning out all throughout the year, including during the winter months. This is a change from the previous trend, which saw a decline in demand over those two holidays.

“Over the Christmas holiday, a lot of individuals were unable to travel due to COVID or opted not to go,” she said. “As a result, a lot of clients, investors and tenants alike, were still looking to move things forwards, to rent out their houses and locate apartments to move into.”

Renters willing to pay significantly more than the asking price for property in Australia

Due to the high level of interest that has been shown in small units, some real estate brokers have decided to discontinue arranging weekend inspections.

Ms Gill explained that the company had come to the conclusion that certain properties should no longer be shown on Saturdays.

Even though it is against the law in the territory to bid on rent, prospective tenants are being driven by demand to make offers that are significantly more than the amount that is being posted.



Ms Gill stated that it was unacceptable for individuals to be required to offer rates that were higher than those that were advertised. 

"But we're seeing a lot of prospective tenants offer beyond stated prices, which means that it might range anywhere from $10 or $20 a week up to $50, $60, or $70 a week, which over the course of a year adds up to a big amount."

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