CoreLogic quarterly rental review shows Canberra is still the most expensive capital city for renters

CoreLogic's latest rental review showed Canberra's median rent, across both houses and units, is now $651.

Canberra rents were up 0.8 for the month to December and 8 per cent over the previous 12 months.

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The quarterly rise in rents was among the highest in the nation and exceeded the national growth of 1.9 per cent.

The average Canberra rental property is almost $50 more expensive than Sydney, where the average dwelling costs $605 per week.

Darwin and Hobart follow at $561 and $521 per week respectively, while Adelaide is the most affordable capital city for median rent at $447 per week.

The figures show Canberra is most expensive capital city for both houses and units. The rent for a typical house in the capital will now set Canberrans back $714 per week, while a typical unit costs $541 per week.

Across the nation, quarterly rent increases were recorded in all capital cities and regional areas, culminating in the highest calendar year of rental growth since 2007.

CoreLogic research director Tim Lawless said demand for detached housing and a lack of supply had contributed to the record growth.

"For more than 18 months we've seen demand for detached housing continue unabated as more renters work from home, either on a permanent or now hybrid working arrangement, which drives demand for more spacious living conditions," he said.

"In addition to this trend, investors, while still active in the market, have been dwarfed by an over representation of owner occupiers entering the market, upgrading or buying holiday homes that aren't being added to the rental pool.

"This is also being played out in the rapid growth in regional rental markets."

Gross rental yields hit a new record low in December across the nation, as the growth in dwelling values outpaced rent increases.

As national dwelling values rose 3.9 per cent in the fourth quarter of 2021, rental values increased by 1.9 per cent, leading to a national gross rental yield of 3.22 per cent. This time last year, the national gross rental yield was 3.71 per cent.

In Canberra, the current gross rental yield across all dwelling types is 3.76 per cent, compared to 4.47 per cent 12 months ago.

CoreLogic analysts said factors such as international border closures, disruption to employment in tourism and hospitality, which includes a high proportion of renters, have contributed to compressed yields.

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