Where to find the cheapest properties to rent near the CBDs
Asking rents have climbed by 10 per cent to $616 across the combined capital cities in the past 12 months, but tenants can still find rental homes fetching as low as $352 a week within 20 kilometres of the CBDs, data from CoreLogic shows.
Despite tightening vacancies, asking rents in 29 house markets are still below $500 a week on average, while units in six suburbs are renting under $400, highlighting hidden gems for renters and investors according to Eliza Owen, CoreLogic head of research.
Despite tightening rental markets, rents in 29 house markets within 20 kilometres of the CBDs are still below $500 a week on average according to CoreLogic. Louie Douvis
“Limited availability of stock, a strong net overseas migration position and a normalisation between city and regional population movements continues to place upwards pressure on capital city rent markets, but there are still opportunities for renters who are hoping to be close to employment hubs and university campuses,” she said.
“The analysis also highlights the up-and-coming areas from an investment perspective as the strength in their rental market and relative affordability can have the spillover effects of changing the demographics, which fuels gentrification and buyer demand into these areas.”
Melbourne dominated the top 10 list of suburbs with the cheapest houses to rent, led by Albanvale in the west, Laverton in the south and Broadmeadows in the north, where rents are sitting at just $441 a week on average.
Kings Park in the north-west and Ardeer in the west are also among the cheapest in the country, with houses renting at just $442 and $443 a week respectively.
Melbourne’s west has the highest concentration of cheap houses to rent within 20 kilometres of the CBD, where eight out 10 suburbs rent for $442 a week, or 23 per cent below Melbourne’s $575 weekly rent.
Across the cheapest unit markets, Albion has the lowest asking rent at just $366 a week and a relatively cheap median price at $406,343, which is achieving 5 per cent gross rental yield.
In Brisbane, the cheapest houses to rent are mostly located in the Ipswich and Logan-Beaudesert areas. House rents in those regions are around 19 per cent below Brisbane’s median house rents, while unit rents are lower by around 22 per cent.
Woodridge had the lowest median weekly rents for both houses and units in Brisbane at $501 and $352 a week respectively. Units are also achieving some of the highest rental yields at 7 per cent as of September.
Across Sydney, the cheapest rentals were concentrated across Parramatta and the inner south-west.
Houses in Granville and Auburn were the cheapest to rent at $648 a week and $678 respectively, or around 15 per cent lower than the greater Sydney median rent of $775 a week.
Ms Owen said the unit markets posed particularly good value, with median rents averaging around 27 per cent lower than the greater Sydney median unit rent of $680 per week.
“For students at Western Sydney University campuses in Parramatta and young health professionals, these markets may be ideal rental regions,” she said.
“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. Lakemba units are currently recording a gross rent yield of 6.2 per cent.”
In Adelaide, eight out of the 10 cheapest markets within 20 kilometres of the CBD were in the North Adelaide region, such as Salisbury, and Salisbury Downs.
Across the Perth market, Girrawheen has some of the cheapest houses to rent in the city at just $491 a week, followed by Gosnells at $501.
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