This article is from the Australian Property Journal archive
SYDNEY’S inner south west and Parramatta offer some of the lowest rents in the city within 20 kilometres of the CBD, according to a new report, giving great lifestyle opportunities for Western Sydney University students and young health professionals, as well as investment opportunities, while Perth dominated the top suburbs for enquiries per listing.
A new report from CoreLogic identified the five lowest median rents for houses and units in SA4 regions within 20 kilometres of the CBDs, with the data showing Parramatta locations Auburn – with a median rent of $648 per week about 15% below the greater capital city media – through South Granville, Granville, Regents Park and Sefton ($676) were the cheapest house rents in Sydney.
Berala ($486) and Regents Park (Parramatta) and inner south west locations Wiley Park, Punchbowl and Lakemba were the cheapest places to rent a unit.
Eliza Owen, head of research Australia at CoreLogic said that for students at Western Sydney University campuses in Parramatta and young health professionals, these markets may be ideal rental regions.
“Lakemba, which has the closest average proximity to the CBD among the top five, is also an easy commute to Sydney’s trendy inner west, where there are an abundance of entertainment venues, breweries and popular restaurants.
“From an investor perspective, some of these areas may also be attractive. Each of the unit markets on the list have a gross rent yield of over 5%, and Lakemba units are currently recording a gross rent yield of 6.2%”
Western suburbs dominated Melbourne’s list. Houses in Albanvale and Laverton ($441) are the cheapest to rent, with Broadmeadows, Kings Park and Ardeer showing similar rates – about 23% below the median Greater Melbourne weekly rent value of $575. Units in Albion, St Albans, Deer Park and Kingsvilles are cheapest, about 24% below the median of $528.
However, the suburbs may not present ideal. Despite being within 20 kilometres of the CBD, commute times from suburbs like Albanvale and Kings Park to the city are around an hour by public transport. Owen said this means they may not be ideal locations for students or young professionals working in the city, but for young families these suburbs offer relatively low-priced house rents.
Rent values rose another 10% across Australia’s capital cities in the 12 months to September, according to CoreLogic, and vacancies have been hovering around historic lows, making for a national rental crisis.
Cheapest rents in Ipswich and Logan-Beaudesert
The lowest median weekly rents within 20 km of the Brisbane CBD were largely across Ipswich and the Logan-Beaudesert market. For house rents, weekly rent prices averaged around 19% below the Greater Brisbane median, and unit markets featured were around 22% lower.
Woodridge had the lowest median weekly rents for both houses ($501 per week) and units ($352). Woodridge units were the lowest of the median weekly rents across all the capital city markets analysed. The suburb is around a 20-minute commute to the Brisbane CBD via Springwood station, and is within Logan on the Karawatha Forest, and commercial centres of Logan Central and Slacks Creek. Rent yields across units in this market were recorded at 7.0% in September.
Eight of the 10 cheapest markets within 20 kilometres of Adelaide CBD were in the North Adelaide region, with St Marys units in Adelaide’s south, and Taperoo in the west, being the exceptions. Salisbury ($473 per week), Brahma Lodge, Salisbury Downs and Paralowie were cheapest for houses, and Salisbury East ($361), Salisbury, Kilburn and Klemzig for units.
Adelaide rent values have climbed 7.2% in the past year, and 32.9% since the start of the pandemic, with median house rents sitting at $568 per week, and units at $463.
The lowest house rents within 20 kilometres of the Perth CBD ranged from $491 in Girrawheen through Gosnels, Midland and Middle Swan to $519 in Koondoola. Midland ($433), Gosnells, Noranda, Hamilton Hill and Coolbellup were cheapest for units.
Bridgewater ($485) is the cheapest place to rent a house within 20 kilometres of the Hobart CBD, and Claremont the cheapest place to rent a unit ($411).
In Canberra, it was Higgins that was cheapest for houses ($597) and Lyons for units ($468).
Moulden is cheapest for houses in Darwin ($539), and Bakewell for units ($457).
Perth dominates most popular suburbs
Meanwhile, new data from PropTrack shows Perth suburbs make up nine of the top 10 nationally for enquiries per rental listing. They were led by Bentley – which has 160 enquiries per listing and a median rent of $470 per week – and then Tuart Hill, Lathlain, Queens Park and Balga. Next was Adelaide’s Para Hills West, and then Perth locations Beldon, East Cannington, Wembley and Midland.
PropTrack also analysed the top 10 suburbs nationally by biggest decrease in key enquiries per listing, with Brisbane’s Coalfalls, ACT’s Melba and Sydney’s Chain Valley Bay all seeing a 77% fall in enquiries per listing over the past 12 months.
Also in the top 10 were Kambalda West, Highfields, Samford Valley, Macquarie Links, Clunes, Tamborine and Higgins.
