A property portal has highlighted the most investable Melbourne suburbs for prospective landlords.
RealestateVIEW said rising property prices in Melbourne mean local buyers will be increasingly looking to rent as a convenient solution.
“For investors, both domestic and international, demand for rental accommodation means that buy-to-let is a lucrative opportunity,” it said.
The portal has picked the most affordable suburbs for investors after comparing the size of each suburb’s private rental sector and the median apartment price.
Private rental share: 65 per cent
RealestateVIEW said Carlton is a popular hub for students, which helps to give it the city’s biggest private rental sector.
Private rental share: 63.1 per cent
The heart of Melbourne is home to the city’s central business district, making it a focal point for workers hunting for a place near to the office.
RealestateVIEW said prices are notably higher than Carlton, but demand from tenants is equally strong.
Private rental share: 58.9 per cent
Southbank is one of the more affluent zones of Melbourne, according to RealestateVIEW.
“As a cultural hub with new developments springing up, though, the rental market is summed up by the 92-storey Eureka Tower: extravagant, but too big to dismiss,” it added.
Private rental share: 56.8 per cent
Parkville is a pricey part of Melbourne located close to the CBD and home to the Royal Park.
“However, with university and medical institutions both in the suburb, tenants still outnumber private owners, as convenience compensates for the higher costs than neighbouring Carlton,” realestateVIEW said.
Private rental share: 56.7 per cent
RealestateVIEW said the industrial zone is not at the top of a flat hunter's wish list.
However, it said its proximity to the CBD makes it a potentially profitable option for landlords, since private renters outnumber property owners.
Private rental share: 56.3 per cent
South Yarra is one of Melbourne’s top shopping districts and is also home to some of the wealthiest homeowners in the city, the property portal said.
“Nonetheless, the private rented sector still makes up over half of the property market,” it said.
Private rental share: 55.4 per cent
East Melbourne is home to many parliamentary and local authority buildings, which makes it a sought-after area for official employees.
Despite some wealthy households, there are many apartment blocks in the area, which are popular among its sizeable rental population.
Private rental share: 48.6 per cent
A growing migrant population and a strong supply of new housing has seen North Melbourne’s rental population expand, making up almost half of the market.
Private rental share: 38.9 per cent
RealestateVIEW said Kensington’s property market is highly diverse, from industrial and commercial property to an array of new houses and social housing flats.
“The population is growing slowly, with a small number of students in the area, but with house prices on the up, renting is not an uncommon choice among its professional residents and families,” it said.
Private rental share: 33.7 per cent
While the size of Flemington’s rental market is far below that of Carlton or Parkville, the area’s low apartment prices make it a suburb worth considering for budget buy-to-let investors, realestateVIEW said.