Rent and property sale increases around the trendy suburbs of inner-city Melbourne are leading a price boom with terraces, funky warehouse conversions and the reimagining of some suburbs as ‘cool’.
Domain economist Dr Andrew Wilson said the increase in rent is in line with the rise in property prices and the ‘scarcity' of lease options in the sought-after inner north.
“Waterways, a new suburb 25 kilometres south of Melbourne, is a niche area that recorded a price lift due to a small number of expensive properties becoming available to tenants,” Dr Wilson said.
“As price rises, so do rents.
“In the case of Fitzroy, it reflects the strength of sales in the inner north and the demand for inner-north property.
“A recovering prestige market, speared by a bounce in sales in blue ribbon Toorak and Kew, has contributed to the rental price jump in pockets of the leafy east.”
Domain Group state the top ten suburbs for rising median lease prices are Fitzroy, Waterways, Toorak, Alphington, Carlton North, Hampton East, Werribee South, Beaconsfield, Kew and Brunswick.
Dr Wilson said Werribee South is priced reasonably for tenants but considered a step up in property quality from nearby Hoppers Crossing and Tarneit.