SYDNEY, Jan. 10 (Xinhua) -- Sydney is no longer Australia's most expensive city for renters, with the nation's capital Canberra the most expensive place currently to lease a house, according to a report released by real estate website Domain Group on Thursday.
The harbor city posted an annual decline in rental rates for the first time in 12 years, which experts say is due to an increase in supply from recently completed construction projects.
The Domain Rental Report for the December quarter shows that median Sydney rent prices dropped 1.8 percent to 387 U.S. dollars per week for a house, and 2.8 percent to 380 U.S. dollars per week for a unit.
Domain senior research analyst Nicola Powell told Xinhua that the increase in supply could see tenants gain more control over their situations.
"Available rental stock continued to increase over the year, with development completions adding to the pipeline of supply," Powell said.
"Tenants will find greater bargaining power as rising supply keeps pressure on rents, providing strong grounds to negotiate lease terms."
Around the country, however, it is a different story, with all the other capital cities seeing rental prices continuing to rise.
To rent a house in Canberra has risen 3.7 percent over the year to 401 U.S. dollars, while units have shot up 8.1 percent to 334 U.S. dollars per week.
With a further supply of construction projects due for completion in Sydney, Powell says that renters may see further reductions in costs over the coming year.