Skip to content Skip to main navigation

Ask RiotACT

Quality childcare in a
welcoming & supportive environment

Will Canberra rent prices fall in the next year or so?

By junketFunket - 23 January 2012 32

I’ve noticed that there are a lot of new apartments springing up all around Canberra. Seen heaps in Bruce but in the city, in tuggeranong, in Dickson, there just seems to be new apartment blocks being built.

There’s also like 5 new suburbs in Gungalin and also the new Molongo suburbs.

Surely, Canberra’s population can’t be growing that fast can it? What with the high AUD scaring off oversea students and the efficiency dividend putting a cap on APS numbers.

So been renting in Canberra for the past 7 years. The rent increases seem to be crazy! It now costs like $350 for a cramp, run down 1 bedroom unit! I just don’t understand what person who can afford that amount of rent would want to live in a place like that??

So I was wondering, with all these apartments going online in the near future,  is it possible for rent prices to fall? Has that and does that ever happen in Canberra? Should I be negotiating a rent price drop? The laws of supply and demand tell me that it should, but in my short history of renting, it feels like every year, the rent keeps going up, up and up. 🙁

What’s Your opinion?


Post a comment
Please login to post your comments, or connect with
32 Responses to
Will Canberra rent prices fall in the next year or so?
shauno 8:15 pm 23 Jan 12

Dont think so. Not with the labor green climate scare departments growing.

el 7:37 pm 23 Jan 12

Jethro said :

450 for a 1 bedroom granny flat in Weston?

650 for a house in Melba?

If there’s an economic argument for buying, there it is.

+1.

To the OP:

Is it possible for rents to drop? Yes, in theory.

Will they drop in Canberra? No. Kthxbi.

justsomeaussie 7:26 pm 23 Jan 12

It all sounds so logical just to buy, but gone are 97%-99% loans (and so they should be). So where is that $55,000 – $100,000 coming from for a deposit for your 450k house? I’m lucky because I’m young (low 30s) and had a cash injection along with savings to get a deposit after living in a share house for 4 years. But I do feel for the average single person, paying high rent and trying to save.

The baby boomers always forget they could afford their first home on a single wage and have capitalised that to buy up multiple properties now to make everything unaffordable for the younger generations.

milkman 6:56 pm 23 Jan 12

Until either demand drops off, or supply is drastically increased, prices and rents won’t drop.

drfelonious 6:50 pm 23 Jan 12

House prices will have to fall first – this is already starting to happen big time in the rest of Australia and Canberra got in on the falls in late 2011.

As prices start to fall, the unsold houses on the market start to increase (again – already happening).

The greedy vendor that think they are entitled to what their neighbour got at the peak of the bubble in 2010 then rents out his or her house thinking that things will improve (they won’t IMO) and hey presto rents go down as supply increases!

Jethro 6:23 pm 23 Jan 12

450 for a 1 bedroom granny flat in Weston?

650 for a house in Melba?

If there’s an economic argument for buying, there it is. I’m paying only slightly more than 450 on a mortgage for a 3 beddie / 2 bathroom. Granted it is not a great area, but no area in Canberra is actually *that* bad.

Considering that in the long term rents will continue to rise, whilst my mortgage will stay about the same (obviously some up and down movements dependent on interest rates) for the next 25 years, and once the 25 years is up the payments become zero. Not to mention that in the long term the land will appreciate in value (not too sure about the next 5 or so years though) and I will have an asset.

To me it’s a no-brainer (although I have had some economists friends make some good arguments in favour of renting).

shauno 5:39 pm 23 Jan 12

Im getting 650 a week for my house in Melba up from 600 and 620 in the last year or so

watto23 4:45 pm 23 Jan 12

While there are people willing to pay the rents they’ll stay there, they are mostly high due to demand and it seems there is still a lot of demand right now.

I think you’ll find the average number of people per dwelling will have dropped as well, thus meaning more place to live.

Deref 4:41 pm 23 Jan 12

I think one of the good things about all the dogboxes being built is that in ten years time you won’t be able to give them away, so that’ll solve the problems caused by the demolition of the slightly older dogboxes known as the ABC Flats.

NoImRight 4:36 pm 23 Jan 12

Its possible to negotiate your rent.If you feel its too high then definately discuss it with your property manager or landlord. As you say supply and demand should drive it. I guess it depends on if you are prepared to walk if you cant reach an agreement?

dungfungus 4:23 pm 23 Jan 12

Two matters to consider:
1. Growth plateauing in the public service –
2. Baby boomers leaving Canberra to retire in warmer climates-
In the end prices depend primarily on supply and demand but availability of cheap, new housing finance may be a dominant factor in 2012.
My bet is that 2012 is going to crunch time for house and unit prices in the ACT but difficult to see rent prices fall just yet. Whatever happens, it will be Tony Abbott’s fault.

Bluey 4:22 pm 23 Jan 12

Yes.

Because Ive just bought a place so the ‘wash your car and it will rain’ logic dictates that housing prices will now fall through the floor along with rent prices.

dpm 4:18 pm 23 Jan 12

Holden Caulfield said :

“I’ve noticed that there are a lot of new apartments springing up all around Canberra.”

Welcome to 2002.

Like you, I’ve been constantly wondering where all the people are coming from.

Ditto. Apartment block after block has been going up for many years, yet the rental market is as bad as its ever been.
I saw a home for sale on Allhomes on the weekend (in Weston Creek) that has a 1 bed granny flat attached that is currently rented for $450pw! And that was without a proper kitchen (it had a sink, plus microwave, grill ‘thingy’ and fridge in the photo – no oven, dishwasher or cupboard space!). WTF?!?!

enrique 4:08 pm 23 Jan 12

….”There’s also like 5 new suburbs in Gungalin and also the new Molongo suburbs.”…

…”It now costs like $350 for a cramp, run down 1 bedroom unit!”…

http://en.wikipedia.org/wiki/Simile

Holden Caulfield 3:49 pm 23 Jan 12

“I’ve noticed that there are a lot of new apartments springing up all around Canberra.”

Welcome to 2002.

Like you, I’ve been constantly wondering where all the people are coming from.

1 2 3

Related Articles

CBR Tweets

Sign up to our newsletter

Top
Copyright © 2017 Riot ACT Holdings Pty Ltd. All rights reserved.
www.the-riotact.com | www.b2bmagazine.com.au | www.thisiscanberra.com

Search across the site