Which capital city suburbs offer rental affordability and CBD proximity?

Throughout the September quarter, national vacancy rates fell to a record low 1.1 per cent, according to CoreLogic’s most recent rental review. Inspiring this decline of available rentals is the total count of national rental listings hitting their lowest level in 11 years, highlighting the severity of the national rental shortfall.

Subsequently, rents have soared 16.2 per cent in the 12 months to September, according to figures provided by SQM Research.

Eliza Owen, CoreLogic head of research Australia, explained the “limited availability of stock, a strong net overseas migration position, and a normalisation between city and regional population movements continue to place upwards pressure on capital city rent markets”.

It is an unenviable position that Australia’s tenants, both prospective and current, find themselves in, as the need for stable accommodation ideally within an easy commuting distance of work or study hubs is counteracted by the increasing costs associated with entering and maintaining a presence in the national rental market.

Ms Owen admitted those studying or working in or around their relevant city’s central business district are in an unfortunate position, whereby affordable rent options are thinner than Antarctic ice in summer.

As a result, tenants who previously resided in inner-city hubs, like Glebe in Sydney’s inner west, are flowing out into “once relatively unpopular areas”, which Ms Owen shared “may be burgeoning with rental demand from high-income professionals”.

Acknowledging the struggle, CoreLogic has crunched the numbers to reveal the most affordable suburbs within 20 kilometres of each Australian capital city’s CBD. It should be noted all data is as at 30 September 2023.

Sydney

In Sydney, the nation’s most expensive rental market where weekly payments exceeding $1,000 aren’t uncommon, the lowest rents within 20 kilometres of the city’s bustling CBD are found predominantly within Parramatta.

Led by Berala’s unit market, where median weekly units are $486, Parramatta, dubbed the city’s second CBD by some, claims seven of Sydney’s 10 most affordable rental markets, with the remaining three – Wiley Park, Punchbowl and Lakemba – confined to the city’s inner south-west.

When it comes to units, Sydney’s five cheapest markets are:

1. Berala, Parramatta - $486 per week
2. Wiley Park, Inner South-West - $491 per week
3. Punchbowl, Inner South-West - $498 per week
4. Lakemba, Inner South-West - $501 per week
5. Regents Park, Parramatta - $509 per week

While the five cheapest housing rental markets within 20 kilometres of the city’s CBD are:

1. Auburn, Parramatta - $648 per week
2. South Granville, Parramatta - $657 per week
3. Granville, Parramatta - $673 per week
4. Regents Park, Parramatta - $675 per week
5. Sefton, Parramatta - $676 per week

Ms Owen explained: “For students at Western Sydney University campuses in Parramatta and young health professionals, these markets may be ideal rental regions.”

Melbourne

The Victorian capital’s west dominated its top 10 list, with 80 per cent of entrants within the region. Units in Albion boast the city’s cheapest weekly rent of $366, while Albanvale, Laverton and Broadmeadows are joint-first when it comes to most affordable house rents ($441).

Melbourne’s five cheapest unit markets are:

1. Albion, West - $366 per week
2. St Albans, West - $398 per week
3. Deer Park, West - $406 per week
4. Kingsville, West - $411 per week
5. Thomastown, North-East - $420 per week

Regarding houses, the city’s five cheapest markets are:

1. Albanvale, West - $441 per week
2. Laverton, West - $441 per week
3. Broadmeadows, North-West - $441 per week
4. Kings Park, West - $442 per week
5. Ardeer, West - $443 per week

While these affordable havens lie within 20 kilometres, and conceivably easing commuting distance from Melbourne’s CBD, Ms Owen warned “commute times from suburbs like Albanvale and Kings Park to the city are around an hour by public transport”.

Unlike Parramatta and surrounds, she believes they “may not be ideal locations for students or young professionals working in the city”. However, young families may be attracted to these cheaper regions.

Brisbane

For the future host of the Olympics, there is a wider spread of regions in its 10 most affordable rental suburbs list, with five areas populating CoreLogic’s list. Ipswich and the Logan-Beaudesert areas are the most prominent on the list, with three entries apiece, while Moreton Bay South, Brisbane East and Brisbane West, all featured.

The Queensland capital has become an increasingly popular destination for migrants arriving from overseas and interstate destinations, attracted to the area by its future economic and social prospects, strengthened by hosting the 2032 Olympics, alongside its relative affordability and lifestyle.

Brisbane’s five cheapest unit markets close to the CBD are:

1. Woodridge, Logan-Beaudesert - $352 per week
2. Rochedale South, Logan-Beaudesert - $436 per week
3. Strathpine, Moreton Bay – South - $446 per week
4. Brendale, Moreton Bay – South - $459 per week
5. Alexandra Hills, Brisbane East - $468 per week

While its five most affordable housing markets within 20 kilometres of the CBD are:

1. Woodridge, Logan-Beaudesert - $501 per week
2. Inala, Ipswich - $503 per week
3. Ellen Grove, Ipswich - $523 per week
4. Darra, Ipswich - $526 per week
5. Rocklea, Brisbane South - $544 per week

Featuring in top position for both affordable unit and housing rental markets, Woodridge’s position as a city-leading rental “cheapie” is solidified by its short 20-minute commute to Brisbane’s CBD, while also benefiting from Logan Central and Slacks Creek’s commercial centres.

Adelaide

Unlike the Queensland capital, the geographical spread of Adelaide’s cheap, CBD-near rental markets isn’t vast, with eight of the 10 lying in the city’s north, and one suburb in Adelaide’s north and west regions making the cut.

The city of churches’ five CBD commuter-friendly unit markets are:

1. Salisbury East, Adelaide North - $361 per week
2. Salisbury, Adelaide North - $378 per week
3. Kilburn, Adelaide North - $397 per week
4. Klemzig, Adelaide North - $402 per week
5. St Marys, Adelaide South - $403 per week

On the housing front, the following five suburbs are the city’s most affordable within 20km of the CBD:

1. Salisbury, Adelaide North - $473 per week
2. Brahma Lodge, Adelaide North - $475 per week
3. Salisbury Downs, Adelaide North - $478 per week
4. Paralowie, Adelaide North - $498 per week
5. Taperoo, Adelaide West - $502 per week

Ms Owen singled out Taperoo as “one of the most unique suburbs to make a list of cheap rentals”.

“It is located on the LeFevre Peninsula, where the suburb boasts a beautiful foreshore and beach [and] is an eight-minute drive to Port Adelaide, which is burgeoning with breweries and cafes,” she said.

“It might not be a first choice of rental markets for young professionals or students, but for those willing to commute around an hour by train to the city, it’s a relatively affordable beachfront setting,” she added.

Perth

The Western Australia’s capital market is categorised by a wider listings shortage in the city, which has the city as the nation’s second tightest rental market according to CoreLogic’s most recent Quarterly Rental Review.

As a result, Ms Owen explained the city’s rents have “seen the largest cumulative uplift of any capital city rent markets since the onset of the pandemic, at 44.9 per cent”.

Despite this, the city’s five most affordable unit markets within 20 kilometres of its CBD are:

1. Midland, Perth North - $433 per week
2. Gosnells, Perth South-East - $441 per week
3. Noranda, Perth North-East - $445 per week
4. Hamilton Hill, Perth South-West - $457 per week
5. Coolbellup, Perth South-West - $462 per week

While for houses, the list is as follows:

1. Girrawheen, Perth North-West - $491 per week
2. Gosnells, Perth South-East - $501 per week
3. Midland, Perth North-East - $503 per week
4. Middle Swan, Perth North-East - $518 per week
5. Koondoola, Perth North-West - $519 per week

Ms Owen believes “as population growth surges across Western Australia, and monthly rent growth remains high, no doubt relatively cheap pockets of the city will become more popular”.

Hobart

Following a boom in the 2010s, Hobart is currently experiencing a rental downturn. Weekly rents have declined 1.7 per cent in the past year.

The city’s five most affordable unit markets lying 20 kilometres or less from its CBD are:

1. Claremont, Hobart - $411 per week
2. West Moonah, Hobart - $422 per week
3. Glenorchy, Hobart - $431 per week
4. Lindisfarne, Hobart - $456 per week
5. New Town, Hobart - $463 per week

On the housing front, the Tasmanian capital’s most affordable and CBD-friendly suburbs are:

1. Bridgewater, Hobart - $485 per week
2. Midway Point, Hobart - $501 per week
3. Chigwell, Hobart - $501 per week
4. Claremont, Hobart - $509 per week
5. Berriedale, Hobart - $516 per week

Canberra

Much like Hobart, national capital Canberra is also experiencing declining rents, unlike a majority of the nation. Rents across the ACT are down 3 per cent year-on-year, however, the region remains one of the nation’s more expensive rental markets.

The city’s cheapest unit rental markets in close proximity to its CBD are:

1. Lyons, ACT - $468 per week
2. Chifley, ACT - $494 per week
3. Hawker, ACT - $501 per week
4. Mawson, ACT - $528 per week
5. Gungahlin, ACT - $529 per week

On the housing front, the five most affordable are as follows:

1. Higgins, ACT - $597 per week
2. Scullin, ACT - $598 per week
3. Page, ACT - $599 per week
4. Charnwood, ACT - $599 per week
5. Holt, ACT - $599 per week

Darwin

Much like Perth, Ms Owen noted strength in the resources sector in recent years has contributed to the city’s rentals jumping 35.7 per cent since the onset of the COVID-19 pandemic.

The city’s cheapest rental markets within touching distance of the CBD are:

1. Bakewell, Darwin - $457 per week
2. Leanyer, Darwin - $468 per week
3. Coconut Grove, Darwin - $475 per week
4. Millner, Darwin - $478 per week
5. Rapid Creek, Darwin - $494 per week

For houses, the Northern Territory capital’s most affordable markets are: