Can tenants still bag a bargain in this hot rental market?

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on May 23, 2022 Fact Checked
Can tenants still bag a bargain in this hot rental market?

New research revealed the top 20 suburbs within 250 kilometres of capital cities where conditions have favoured renters over the past 12 months.

The quarterly Better Renting Report identified the top 20 suburbs where conditions became both suitable and in favour of renters over the past year.

For suburbs to be considered, they had to have at least 1,000 properties and be located within 250 kilometres from a capital city CBD. 

They also needed to meet other eligibility criteria, such as having their vacancy rate increase by at least half a percentage point (0.50%), while median weekly rents must have fallen or remained unchanged in the past 12 months.

Top 20 tenant-friendly suburbs

There were seven house  markets and 13 unit markets located across Australia that made the cut.

Most suburbs were located in NSW (8), followed by Victoria (4), Queensland (3), Western Australia (3), South Australia (1) and the ACT (1).

All of the suburbs below have at least a 2% vacancy rate, while median weekly rents range from $225 to $1,500.

Rank Market Suburb Vacancy rate Median weekly rent
1 House Coolbinia, WA 7% $510
2 Unit Essendon West, VIC 3.9% $435
3 House Barwon Heads, VIC 5.9% $600
4 House Prairiewood, NSW 4.1% $470
5 House Gwelup, WA 2.9% $650
6 Unit Bellfield, VIC 3.5% $490
7 House Castlecrag, NSW 3.7% $1,500
8 Unit Beacon Hill, NSW 2.7% $480
9 Unit North Narrabeen, NSW 2.5% $520
10 Unit Nagambie, VIC 4.4% $230
11 Unit Russell Island, QLD 3.5% $225
12 Unit Mullaloo, WA 2.7% $590
13 Unit Speers Point, NSW 3.5% $450
14 Unit Putney, NSW 3.7% $580
15 House Deakin, ACT 4.4% $820
16 Unit Windang, NSW 2% $320
17 Unit Tempe, NSW 3.1% $320
18 House Henley Beach South, SA 2.5% $680
19 Unit Heathwood, QLD 3% $400
20 Unit Robertson, QLD 2.6% $365


Challenges facing renters

Fewer than 50 suburbs across Australia made RentRabbit's list overall, so the suburbs were ranked based on how much the vacancy rate increased. co-founder Ben Pretty said it's a concern that there are so few tenant-friendly suburbs in Australia. 

"Throughout much of Australia, the data shows that vacancy rates are low, vacancy rates are falling and rents are rising," Mr Pretty said.

"Thankfully, though, there are some markets where vacancy rates are increasing and rents are decreasing, which means tenants aren’t completely out of options."

Mr Pretty said he's concerned about the future, now that the international border has reopened and our population growth is likely to return to pre-pandemic levels. 

"Unless we see a corresponding increase in the supply of rental properties, the number of tenant-friendly suburbs is likely to decrease," he said.

Image by Quentin Grignet on Unsplash

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Rachel is a Finance Journalist, and joined Savings in 2021. Coming from a background in the FinTech space, her interests include the innovation of lending technology, property, investing, and more. With a passion for educating and informing people about their finances, she hopes to increase the financial literacy of everyday Australians.

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