I have definitely experienced a significant fall in rents. So have most of my friends who are mostly renting. Its worked out quite well for me, negotiated a near 25% reduction on my old place, and have just been through the process of finding a new place...got a great deal @ a pretty significant markdown.
When I moved down here 3 years ago, it was a really tight market where it was actually very competitive finding a place. I assume yields would've been very good then, so it feels more like a correction in pricing.
Also driving around, i'm amazed at the supply that seems to be going up everywhere I look. It felt like I could count the developments on two hands when I first came (excluding new neighbourhoods of course), but now there literally everywhere in the inner/middle ring.
Only place where I think its holding up in yields is the Foreshore!! Seems to be a resilient rental market, at least anecdotally. Agents didn't move on price and didn't need to. Not surprised though, for my demographic, its by far the most attractive place to live in Canberra.
Would be interesting to hear peoples thoughts on impact on prices...auctions I've been to have been dead.