Where do tenants want to rent? The top 10 suburbs where renters are searching for apartments
“Vacancy” is not a good word for any investor looking to keep a stable cash flow and a decent tenant, and yet it seems many areas are facing rents decreasing in the capital cities, according to SQM Research, with Canberra and Perth suffering the most.
Similarly, Perth has recently had a tough run with tenants breaking leases and vacancy rates increasing - late last year, in fact, Property Observer reported that Perth landlords were lowering rents to dissuade tenants from leaving.
52% of Gen Y said they’d like to live in the inner suburbs.
Realestate.com.au have released the top 10 suburbs searched online for apartment rentals over the past six months (September 2013 to February 2014) based on their internal statistics.
The top 10 list:
- Brisbane (QLD)
4.7% vacancy rate (SQM Research)
Daniel Argent from Urban Property in Brisbane says that the rental demand for inner Brisbane apartments is increasing.“There is definitely a high level of rental demand for inner city apartments. There are a lot of people looking for two-bedroom apartments that are close to shopping and transport. With such high demand we find that most of the properties are tenanted within two weeks of listing,” said Argent. - Canberra (ACT)
2.5% vacancy rate (SQM Research) - Perth (WA)
5.7% vacancy rate (SQM Research)
This two bedroom, two bathroom apartment is currently available to rent in Perth. Sitting on the border of East Perth and Perth, it’s available at $750 a week. - Melbourne (VIC)
6.2% vacancy rate (SQM Research) - Docklands (VIC)
5.8% vacancy rate (SQM Research)
A renter could lease an apartment in this Docklands complex at $400 a week. Unfurnished studio apartments at Victoria Point are leasing from $315 per week.
Docklands' difficult conception and towering cranes previously saw Property Observer take a deeper look at the area, expected to have attracted $17.5 billion by 2025 in private sector investment, in this suburb spotlight. - Southbank (VIC)
2.3% vacancy rate (SQM Research)
An unfurnished one bedroom apartment in the Victoria Tower will set a renter back at least $405 per week. Shared facilities include a gym, tennis court, spa, sauna and pool. - Braddon (ACT)
1.5% vacancy rate (SQM Research)
This three bedroom, two bathroom townhouse in Braddon is significantly more affordable, at $670 per week. - Nathan (QLD)
3.3% vacancy rate (SQM Research) - Parramatta (NSW)
2% vacancy rate (SQM Research)
The booming Sydney "second CBD" suburb of Parramatta is currently seeing the tallest residential tower in the area, V by Crown, under construction. The impressive development may just underpin the longevity of the area. - Chatswood (NSW)
2.8% vacancy rate (SQM Research)
This freshly painted and two bedder in Sydney’s Chatswood is available for $525 per week.
For more data, including median prices and rents on each of these areas, you can use our free suburb data pages.
Interestingly, as noted above, the vacancy rates are still high on a number of these areas - and SQM Research's Louis Christopher has since tweeted Property Observer that he has put out warnings to investors on a number of these suburbs. Docklands and Southbank, in particular, have long had a reputation of an apartment market oversupply.
The number of tenants and sharers seeking apartments rather than other types of property, both established and new, is up to 39% of the market – an increase of 7% since 2012, according to the realestate.com.au figures.
The number of tenants and sharers seeking apartments is now at 39% of the market.
Tenants under the age of 35, earning between $50,000 and $99,000 are those driving this trend. Within this, 52% of Gen Y said they’d like to live in the inner suburbs.
While only 6% of Gen Y tenants nominated regional suburbs as their ideal location, 15% of baby boomers preferred regional suburbs, in their 2014 Consumer Insights Report on Tenants and Sharers.
Of all tenants, 72% of Gen Y said they’d take care of the property like it was their own, with 84% of Baby Boomers citing the same. Six in 10 tenants have said they spent money to make improvements to a rental property.
The general manager of sales and operations at realestate.com.au, Arthur Charlaftis, said that the key for tenants is research and knowing the key statistics about the area, as well as the amenities and lifestyle available.