Where you can find the biggest rental bargains nationwide

Renters in Australia’s largest cities can see a silver lining from the COVID-19 pandemic, with as many as 30 per cent of all rental listings in some capitals offering discounts, new figures show.

All capital cities recorded a rise in rental discounting from February to May, with tenants in some suburbs able to enjoy discounts of almost 12 per cent.

The proportion of rental listings offering a price discount peaked in April across almost all capital cities when the country was in the thick of coronavirus-related restrictions, shutdowns and interstate and international border closures, and landlords rushed to discount properties to try to secure tenants. 

Sydney and Melbourne saw over a quarter of listings cut asking rents in April, at 29.9 per cent and 27.4 per cent respectively.

The figures eased slightly but remained high in May, with 27.7 per cent of Sydney listings still discounted, and 25.3 per cent in Melbourne. 

The rental market was hard hit by massive job losses, wage cuts and border closures as many international students left the country and renters packed up to move back to the family home.

This created dwindling demand at the same time that an oversupply of rental properties emerged as empty short-term holiday accommodation was offered for long-term lease.

But Domain senior research analyst Dr Nicola Powell said the surge in supply was likely to be temporary, with some rentals converted back to short-term leases as interstate travel restrictions were eased.

“This trend is likely to continue as the demand for short leases is renewed from Australians travelling interstate to reconnect with loved ones, or to holiday at home, something that we are all likely to be doing more of in the future,” she said. 

Tourism-dependent Hobart recorded a spike in discounted listings to 27.6 per cent in April, easing to 19.3 per cent last month. 

Around the country, Darwin and Brisbane also saw more than a fifth of rental ads offering discounts in April, at 20.7 per cent and 20.6 per cent respectively.

Perth had just under a fifth of listings discounted at 18.6 per cent, and Canberra saw 16.5 per cent of rentals discounted, the lowest in the country. 

The hardest-hit regions were those where tourism and student migration were the biggest drivers of population growth.

Hobart’s south and west region experienced a surge in discounted rentals with the rate of discounting almost tripling from February to May, jumping to 33.9 per cent.

The central business districts of our capital cities saw a spike in discounting: Sydney CBD and Eastern Suburbs hit 36.7 per cent while Inner Melbourne climbed to 33.2 per cent.

Brisbane Inner City saw a rise to 24 per cent and inner Perth to 23.8 per cent.

“Those regions less reliant on migration and tourism will weather this storm better,” Dr Powell said.

“The impact of tourism will really change the dynamic of the rental market. It’s going to be difficult in the short to medium term, but there is a silver lining there.

“Australia had a strong response in controlling the [corona]virus and this may become a drawcard for people looking to move here in the future.”

Top 10 suburbs for discounts – median price decrease as at May 2020

Source: Domain

In some suburbs, almost half of advertised listings were discounted.

Narraweena and Woollahra in Sydney, Cullen Bay, Wagaman and Driver in the NT, and Point Lonsdale on Victoria’s Bellarine Peninsula all recorded more than 45 per cent of listings discounted.

Even so, the size of the discount on offer varied widely around the country.

Landlords were offering the deepest discounts in the NSW mining town of Cobar, at 11.9 per cent on average. 

Exclusive Vaucluse on Sydney harbour and apartment-dense Southbank in inner Melbourne both offered discounts of at least 11 per cent on average. 

Discounts on offer in Battery Point in Hobart ticked just over 10 per cent while in Launceston the rate sat at just under 9 per cent.

Perth suburbs Wilson and Floreat saw discounts of at least 9 per cent. 

Dr Powell said the areas that had seen the heaviest reductions would mean cheaper rents for tenants as Australia emerges from the coronavirus pandemic.

“Tenants are in the driver’s seat,” Dr Powell said.

“Tenants should negotiate with landlords and utilise this rise in stock to their benefit. 

“There’s plenty of competition between landlords right now and many will want to retain the good tenants they have.”