The suburbs you need to move to NOW: The neighbourhoods where rent has plunged by up to 25% – the biggest fall in more than a decade
- Australian renters are capitalising on a soaring property investment market
- 55 suburbs in Sydney have seen rental costs drop lower than five years ago
- Property expert said city’s downward trend was biggest in more than decade
- Picture mixed in Melbourne, where there were large falls in pricey suburbs
- But in less affluent areas such as Sunshine West unit rent prices actually rose
Australian renters are cashing in on a soaring property investment market as rental prices drop by up to 25 per cent.
Fifty-five suburbs in Sydney have seen rental costs fall lower than they were five years ago, while a series of affluent Melbourne areas have experienced drops in the double digits.
A property expert said the downward trend in the Harbour City compared to last year was the biggest decline in more than a decade.
Australian renters are cashing in on a soaring property investment market as rental prices drop by up to 25 per cent (Millers Point pictured)
‘It’s the strongest annual decline in about 15 years,’ research analyst Eliza Owen told Domain.
The biggest fall was on the city’s swanky lower north shore in Greenwich, where rental prices fell by 24.8 per cent to $940.
Taren Point – on the banks of Sydney’s St Georges River in the city’s south – saw a similarly stark decline of 24.2 per cent.
In total, two-thirds of suburbs in Australia’s largest city saw a drop in rental prices.
The picture was more mixed in Melbourne, where there were large falls in traditionally pricey suburbs like Toorak and Parkville in the inner-city.
Estate agent Tom Newman of RT Edgar Toorak said the dramatic drop could be explained by a surge in the amount of low-cost rental properties.
Darren McMullin of Kay & Burton South Yarra also added landlords from overseas investing in modern apartment blocks were more likely to offer lower rental rates.
| SUBURB | RENT /WEEK | YEAR-ON-YEAR CHANGE | |
|---|---|---|---|
| Greenwich | $940 | -24.8 per cent | |
| Taren Point | $690 | -24.2 per cent | |
| Millers Point | $1,100 | -21.4 per cent | |
| Bungarribee | $461 | -20.5 per cent | |
| Bellevue Hill | $1,998 | -20.1 per cent | |
| Kemps Creek | $500 | -19.4 per cent | |
| Curl Curl | $1,048 | -16.2 per cent | |
| Castlecrag | $1,335 | -15.9 per cent | |
| Dover Heights | $1,350 | -15.6 per cent | |
| Oyster Bay | $650 | -13.3 per cent | |
| Source: Domain | |||
55 suburbs in Sydney have seen rental costs fall lower than they were five years ago, while a series of affluent Melbourne areas have experienced drops in the double digits (pictured Parkville, in city’s inner-north)
The picture was mixed in Melbourne, where there were large falls in traditionally pricey suburbs like Toorak and Parkville in the inner-city (stock image of Toorak pictured)
| SUBURB | MEDIAN WEEKLY RENT | YEAR-ON-YEAR CHANGE | |
|---|---|---|---|
| Parkville | $635 | -14.8 per cent | |
| Toorak | $690 | -13.6 per cent | |
| Mount Albert | $598 | -12.8 per cent | |
| Watsonia North | $410 | -8.9 per cent | |
| Keilor Park | $400 | -7.0 per cent | |
| Source: Domain Rental Report, September quarter, 2019 | |||
The biggest fall in Sydney was on the city’s swanky lower north shore in Greenwich (pictured), where rental prices fell by 24.8 per cent to $940
‘In the big multi-developments where there’s a lot of offshore buyers, they are pretty keen to get someone in quickly,’ she said.
‘What you thought might get you $650 per week is now getting $575 just to compete against others with a cheaper rate.’
But in less desirable areas prices actually rose, with Sunshine West in the city’s west witnessing a 10.8 per cent year-to-year increase in unit prices.
House rent prices also grew in some affluent areas of Melbourne, including Blairgowrie on the Mornington Peninsula – where prices grew by 18.3 per cent.
Black Rock, which also faces Port Phillip Bay, saw rate drops of $850.
Taren Point (pictured) – on the banks of Sydney’s St Georges River in the city’s south – saw a similarly stark decline of 24.2 per cent