Not all locations are created equal when it
comes to rental demand, with some Australian suburbs much more popular than
others. Proximity to universities, entertainment venues and other amenities
play a huge role when people decide where to live, as do affordability
considerations and current supply levels. Let's take a look at the most popular
places to rent in Australia within a 20km radius of a major CBD using data
provided by realestate.com.au (REA).
Whether you're a struggling student who
wants to be close to the action or an investor looking for a solid return, knowing
the most sought after rental locations is crucial. While traditional hotspots
like Fitzroy and St Kilda are still popular with renters, surprisingly, most of
the action at the moment is in Tasmania. In fact, when using REA rental demand
data for the last six months of 2017, and median weekly rental data for the
entire year, it was "The Island State" which took out the top five
spots in the country.
Glenorchy in Tasmania was Australia's most
in-demand rental suburb in the latter half of 2017, with each property listed
there receiving an average of 2,520 online visits. Once an agricultural hub,
Glenorchy is extremely popular with younger renters due to its affordability
and close proximity to Hobart's CBD. Tasmania is unique in this regard, with
median weekly rents in Glenorchy just $330 even though the suburb is only seven
kilometres from the CBD. Moonah in Tasmania took outsecond position with an average
of 2,313 views over six months. Moonah lies just five kilometres from the
Hobart CBD, with the average weekly rent having risen by 11.1 percent over the
course of the year to $360.
Located between the Derwent River and the
foothills of Mount Wellington Park, South Hobart came third on the list with
2,195 average views. The average weekly rent in South Hobart is a little more
pricey at $450 per week, but it's also just four kilometres from the CBD. West
Hobart was fourth on the list, followed by another Hobart suburb, Kingston.
Hobart's dominance in the rental market can be attributed to many factors,
including affordability, strong millennial demographics, good employment
prospects, a healthy tourism industry, and a strong education sector.
Fitzroy was sixth on the REA list for most
popular rentals, with this inner Melbourne suburb famous for its hipster
lifestyle, cafe culture, and vibrant night-life. Rental prices in Fitzroy cost
a lot more than Tasmania, however, with the average weekly rent coming in at
$650. While an average of 1,841 people viewed Fitzroy rental properties over
the last six months, the demographics of the area are slowly changing from
young residents aged 15-24 to older people with a higher disposable income.
Other trendy Melbourne suburbs took out the next two spots, with average
Carlton properties viewed 1,803 times over six months and St Kilda properties
viewed 1,800 times. Both suburbs have an average weekly rent of $650. It's back
to Tasmania for ninth and tenth spots on the list, with New Town properties
getting 1,795 views at $450 a week, and Sandy Bay properties getting 1,735
views at $520 a week.
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