Desirable suburbs where rents have dropped by up to 26 per cent

The cost of renting has fallen by nearly 26 per cent in some of Australia’s most sought-after suburbs, including the Sunshine Coast, the Mornington Peninsula, inner-city Brisbane and Sydney’s eastern suburbs, according to new Domain data. 

The Domain Rent Report for the March quarter reveals that units in the ACT’s Red Hill posted the steepest rental price drop across the nation, with rents falling by 26.5 per cent. Here, the median unit rent dipped from $675 to $535 – an extra $140 in renters’ pockets a week, or $7280 a year.

On Queensland’s Sunshine Coast, the median house rent also dropped in the beachside suburb of Minyama, falling from $1063 to $900 – a difference of $163.

Other sought-after suburbs to record declines included Manly in Queensland with an $83 drop to $700, and Sorrento in Victoria with a $35 dip to $713 a week. 

These suburbs bucked the trend of record-high rent rises across the capital cities, where tenants are being priced out of rental markets.

In the last 12 months, the median asking weekly rent price for houses in Brisbane rose by $30, or an extra $1560 out of pocket for tenants each year. Sydney had a $25 bump, and Melbourne $10.

However, the Domain data also reveals there is some respite for tenants when looking at rental prices at a suburb level, as the weekly rent in many desirable pockets has dropped, says Domain chief of research and economics Dr Nicola Powell.

$835 Per Week

17 Kensington Drive, Minyama QLD 4575

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“It is that reminder that, even within a capital city, there are different dynamics going on at a suburb level,” she says.

This variation is prominent in the tightly held neighbourhoods in Sydney’s Inner West. Newtown’s median weekly unit rent increased by $49 to $625, while Enmore next door dropped $36 to $520.

Located only three kilometres from Sydney’s CBD, Enmore is high on many renters’ wishlists, and the price drop represents a great opportunity to rent in the area. 

$700

10/37 Harrington Street, Enmore NSW 2042

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Working in Enmore and Sydney’s Inner West, Rosalie Gordon of Planet Properties says the rental market is adjusting to normal levels, which has resulted in the price drop.  

A large portion of renters in the area are young university students and young professionals who have a limited budget for rent, Gordon says.

“Everything under $500 a week still gets a lot of people [inquiring],” she says. “Once you go up higher, it gets fewer and fewer people coming through.”

$900 Per Week

12 New Road, Manly QLD 4179

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In the Brisbane suburb of Manly, the median asking rent for a house decreased by $83 and now sits at $700. The area is a favourite among locals for its harbourside location and access to amentities.

Local agent Ayden Cinello says the price dip is likely due to locals prioritising low-maintenance properties and favouring units over houses. 

“We’re still seeing high demand for things like apartments or townhouses,” he says. 

“We’re not getting as many people through open homes, and not getting as many inquiries on houses currently. Because the demand is not there, we are having to drop a few more prices than we’ve initially had to.”

$780 per week

47 Ossett Street, Sorrento VIC 3943

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Melbourne’s prestigious beachside suburb of Sorrento also saw a $35 dip in weekly rent prices, taking its median to $713 for a house.

Owners transitioning holiday rentals to long-term rentals is the probable cause behind the price drop, says Andrew Hall of Kay & Burton Portsea. 

“We’ve leased lots of properties, or listed and leased lots of properties at that [$500 to $750 price point],” he says.

“In the past few months, properties at the top end – $1500, $2000, $2500 a week – have tended not to be listed.”

Halls says 60 per cent of houses in Sorrento are leased by Melbourne families who use the rentals as weekend homes.