Capital-city suburbs where you can rent for no more than $450 a week
New data shows there are 196 suburbs across Australia’s capital cities with a median asking rent of no more than $450 a week – and 78 of those postcodes are in Melbourne.
The Victorian capital’s strong showing was revealed by the latest Domain Rent Report, released on Thursday, and comes despite its record-high median house and unit rental prices.
Australia’s rental crisis continued to deepen throughout the March quarter, with the data showing record house rents in every city but Canberra, and record unit rents in every city but Hobart.
Although rental conditions typically tend to be strong in the first quarter of the year, the imbalance of supply and demand in the rental market has driven prices to new records in most cities, says Domain chief of research and economics Dr Nicola Powell.
“The supply and demand imbalance is placing pressure on rent prices which is consistent with the record low vacancy rate nationally, with Sydney, Melbourne and Perth at record lows, and Adelaide and Brisbane close to their peak trough,” she says.
Although cities such as Canberra and the Gold Coast have no suburbs with rents under $450 a week, with very limited options in Darwin and Sydney, Powell says there are viable choices for tenants seeking reasonably priced rental properties in several capital cities.
“Rent prices have seen such significant change over the last three years,” she says. “Melbourne, for instance, used to be the most affordable capacity city in which to rent, but in the last quarter, Hobart has been reinstated as the most affordable.
“But there are pockets within these capital cities that are more affordable than others.”
For instance, in Werribee, one of Melbourne’s 78 suburbs where rent prices are $450 or less, the median for houses is $440 a week. For a unit in nearby Werribee South (just 10 minutes away), it is $10 less.
Local agent Ali Dowling of YPA Estate Agents Wyndham City says prices in both suburbs are “spot on” to what she’s seen in recent weeks.
“We base our prices on what’s happening in the market and what we’re competing against,” she says. “So around that $400 mark is what we’re seeing properties get leased out for, which is relatively affordable compared to other suburbs.”
Dowling is leasing 45 Westminister Drive, Werribee, with an asking price of $420 a week. The three-bedroom property is on a spacious block, and has a main bedroom with a walk-in wardrobe, and a covered pergola in the backyard.
“We’ve had that listing live for less than a week and had 13 groups through on the very first open for inspection so we expect to lease this one soon,” she says. “Anything around or under that $400 mark a week gets a whole bunch of people through but it does come with compromises for some tenants.
“A lot of prospective tenants give up a second bathroom when looking at around this price guide and because homes are a little older, renters are saying, ‘We’ll just go without a second bathroom.’ ”
Location is another compromise tenants have to make when searching for affordability, Powell says.
“When you look at Melbourne, most of the suburbs are further from the CBD, around the west of Melbourne. Likewise in Sydney, some suburbs are closer to the Blue Mountains than they are to the city,” she says.
“Affordability in the rental market comes in different forms but it’s often tied to location. For those seeking proximity to the city, compromise often means considering units, but for a house, the compromise would have to be further afield from the CBD.”
In Sydney, 19 suburbs offer a house or unit for $450 or less a week, including units in Fairfield – about 30 kilometres from the CBD – which have a median of $400 a week.
Local agent Adam Falvo of Andrew Partners Real Estate says the suburb attracts many families moving to the country.
“Fairfield is known for its affordable units so that’s what’s driving demand here,” he says. “A lot of tenants have just moved to Australia, have two or three kids in tow and are looking for something that isn’t too expensive to start with.
“For the median rent, tenants can expect a very basic two-bedroom unit but there hasn’t been a lot of stock available so demand is at an all-time high.”
Falvo is currently advertising three units on Harris Street in Fairfield from $470 to $480 a week – all of which have seen the same prospective tenants walk through.
“I only had one open for inspection on Saturday and I had around 130 people in one hour,” he says. “What they generally did was look through the first unit, then walk to the second unit and then make their way to the third unit inspection … everyone is looking for the same thing.
“And they all apply for the property so it is a fight to secure a rental property these days.”
In Brisbane, there are 25 suburbs where house or unit rents are no more than $450 a week, including Beenleigh apartments at $420.
Being offered for $390 a week is 19/92 Boundary Street, Beenleigh, a two-bedroom unit with a single lock-up garage, a balcony and a kitchen equipped with an electric stove and ample storage space.
In Adelaide, where there are 40 suburbs with rents of $450 or less, the asking rent for a house in Elizabeth Vale is $450 a week.
Right on the median rent is 1/18 Davidson Road, Elizabeth Vale, a three-bedroom property with spacious rooms, a modern kitchen, an open-plan living area and a low-maintenance backyard.
In Darwin, there’s only one suburb where rents are $450 or less; in Hobart, there are 20 suburbs; and in Perth, there are 13.
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