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There’s a huge opportunity to tempt tenants back into Melbourne city rental markets with rock-bottom prices and correspondingly high rental costs in the regions.
New data from Console Cloud has revealed a steep decline in the rental price of suburbs across Melbourne.
With the region not showing a strong market for buyers and sellers, it’s arguing that it could pose “a real opportunity” for people looking for more affordable rental options.
According to Console Cloud’s rental insights expert, Natasha Anich, investors of late have been turning their attention to Victoria’s non-metro areas — but it means the biggest savings for renters could be found within the city.
She said: “Non-metro rentals in Victoria demonstrated a 5.09 per cent increase since February, and in contrast, metro Melbourne properties experienced a rental decrease of 6.26 per cent.”
From her perspective, “this is good news for renters looking for less expensive living options in the city”.
Melbourne is home to the 10 lowest-performing rental suburbs across the state at the present time.
“We weren’t overly surprised to see this play out,” Ms Anich acknowledged, considering Victoria’s very difficult 18-month run through the pandemic.
“The Melbourne City postcode was the lowest-performing suburb across the state, showing an almost 15 per cent decline in average rental costs.
“Carlton and Maribyrnong followed behind, with Docklands, Melbourne, Southbank, North Melbourne, South Melbourne, Malvern East and Caulfield East also demonstrating negative rental growth.”
From her perspective, “the news that all 10 of the weaker rental performers are in metro Melbourne could be a huge opportunity for the city to attract new renters”.
“While that hasn’t been great news for property owners in these suburbs, it is excellent news for attracting long-term renters until things stabilise and could also mean new life for the quietened city centre,” Ms Anich posed, before adding that there is “significant opportunity” to tempt a new market into the city, who had previously been priced out of city suburbs.
Regional rent boom
On the other end of the rental spectrum, Hamilton has been the big winner, posting rental growth of 9.94 per cent since February 2021.
Trailing behind were regional suburbs Nhill (8.84 per cent), Benalla (9 per cent), Swan Hill (7.76 per cent), Ararat (7.53 per cent), Kyneton (7.1 per cent), Flora Hill (7.07 per cent), Golden Square (6.75 per cent), Kangaroo Flat (6.67 per cent) and Wodonga (6.6 per cent).
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