According to the latest Allhomes data, properties with two to three bedrooms increased by $20 a week compared to last year, achieving a median rent of $450 during the April quarter. Properties with four bedrooms or more rose by $30 a week, achieving a median rent of $580.
One-bedroom townhouses and apartments increased over the year by $10 a week, hitting a median rent of $350. Similarly, townhouses and apartments with two to three bedrooms increased by $10 a week, posting a median rent of $405 during the April quarter.
The surplus of apartment stocks in the Canberra rental market helped ease price growth in previous years. But now, the pool of rental properties are dwindling. Over the latest quarter, 3342 new properties were listed on Allhomes, declining by 16.4 per cent compared with the same period last year. This easing supply has put pressure on weekly rental prices, forcing them upward.
The price gains may have also forced some tenants to opt for apartments over detached houses, which would have absorbed some of the extra apartment stock. The low interest rates might have also helped some tenants become home owners, hence decreasing rental demand.
The demand for property has also eased, although not to the same degree as new listings. While rental prices have declined a lot over the past few years, it is only recently that rental prices have begun to increase once again due to the easing of supply.
Collections: Mortgage News