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Australia’s 50 most expensive suburbs to rent revealed - featured image
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Australia’s 50 most expensive suburbs to rent revealed

Australia’s rental market is tougher than ever, with sky-high prices and very low rental vacancy rates pushing us into what some are calling a rental crisis.

In fact, just last week a new report highlighted the distressing state of Australia’s rental market, with only half the number of rental properties now available compared to pre-COVID.

The national vacancy rate has fallen to its lowest level since 2018, at 1.47%, with major cities bearing the brunt of the crisis.

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Note: This means that annual growth in national rent values has jumped 10.2% - the highest-ever increase over a 12-month period.

The national median rent, according to CoreLogic, is now $555 per week.

But while that might seem affordable for some, there are many suburbs where rental prices are significantly higher.

Australia's 50 priciest suburbs for renters

In fact, all of Australia’s top 50 most expensive suburbs to rent have one thing in common… they’re all located in Sydney.

According to the most recent data by CoreLogic, the Sydney harbourside suburb of Vaucluse is Australia’s most expensive place to rent a home with the median weekly rental costs sitting at a whopping $2,692.

It’s somewhat unsurprising though given that the median house price in the area comes in at just over $8 million.

Second and third on the list are also located in Sudney’s affluent eastern suburbs.

Rose Bay’s $2,270 median rent gives a 2.04% rental yield while Bellevue Hill has a median rent of $2,180.

Close behind is Balgowlah Heights on Sydney’s north shore with a $2,026 median rent.

Meanwhile, renters in Clontarf, which is in fifth place on the list, can expect to pay around $2,020 per week.

Here’s the full list:

Suburb State Median rent Rental yield Vacancy rate Annual change
1 Vaucluse NSW $2,692 1.84% 4.50% 8.30%
2 Rose Bay NSW $2,270 2.04% 1.90% 11.70%
3 Bellevue Hill NSW $2,180 1.56% 5.50% 16.00%
4 Balgowlah Heights NSW $2,026 2.46% 2.60% 14.40%
5 Clontarf NSW $2,020 2.16% 4.20% 7.60%
6 Clovelly NSW $2,001 2.55% 4.60% 20.30%
7 Dover Heights NSW $1,996 1.96% 3.60% 12.90%
8 North Bondi NSW $1,930 2.36% 3.30% 12.60%
9 Bronte NSW $1,887 1.95% 4.00% 14.10%
10 Woollahra NSW $1,873 2.12% 4.20% 10.70%
11 Bondi NSW $1,840 2.37% 1.90% 22.40%
12 Coogee NSW $1,806 2.56% 3.60% 22.70%
13 Seaforth NSW $1,783 2.58% 3.70% 9.50%
14 South Coogee NSW $1,759 2.51% 3.00% 23.80%
15 Queens Park NSW $1,749 2.38% 4.30% 15.40%
16 Northbridge NSW $1,691 1.92% 4.10% 6.20%
17 Paddington NSW $1,664 2.59% 2.30% 11.90%
18 Castlecrag NSW $1,645 2.04% 3.80% 7.90%
19 Fairlight NSW $1,642 2.33% 1.00% 7.10%
20 Bondi Junction NSW $1,599 2.87% 2.60% 14.40%
21 Randwick NSW $1,594 2.61% 2.40% 24.10%
22 Curl Curl NSW $1,588 2.27% 2.40% 16.70%
23 Burraneer NSW $1,566 2.55% 5.90% 13.00%
24 Castle Cove NSW $1,553 2.12% 4.30% 2.60%
25 Balgowlah NSW $1,517 2.43% 0.60% 10.50%
26 Collaroy NSW $1,496 2.54% 1.30% 17.10%
27 North Curl Curl NSW $1,480 2.49% 3.20% 20.30%
28 Freshwater NSW $1,476 2.37% 1.80% 14.50%
29 Little Bay NSW $1,450 3.37% 1.80% 27.80%
30 Bayview NSW $1,437 2.48% 3.80% 7.00%
31 Brighton VIC $1,343 2.00% 1.40% 0.30%
32 Dalkeith WA $1,329 2.17% 1.30% 9.40%
33 Swanbourne WA $1,255 3.20% 1.10% 10.70%
34 Black Rock VIC $1,245 2.62% 2.10% 8.00%
35 Cottesloe WA $1,242 2.32% 2.10% 3.00%
36 City Beach WA $1,234 2.58% 1.10% 8.50%
37 Middle Park VIC $1,225 2.33% 1.80% 17.50%
38 Hamilton QLD $1,218 2.61% 3.00% 6.00%
39 Mount Claremont WA $1,217 3.69% 1.30% 10.80%
40 Malvern VIC $1,199 1.99% 1.20% 11.10%
41 Mosman Park WA $1,175 2.98% 0.60% 10.30%
42 Canterbury VIC $1,174 2.03% 0.30% 13.20%
43 Sandringham VIC $1,172 2.76% 0.30% 1.60%
44 Elwood VIC $1,163 2.52% 1.50% 18.90%
45 Ascot QLD $1,156 2.51% 3.10% -0.50%
46 Hawthorne QLD $1,155 3.21% 1.60% 10.80%
47 Kew VIC $1,141 2.13% 1.30% 18.90%
48 Bulimba QLD $1,132 3.14% 1.00% 9.20%
49 Claremont WA $1,130 3.11% 0.80% 7.70%
50 Hampton VIC $1,129 2.51% 1.00% 3.10%

 

Outside of Sydney, Melbourne’s bayside Brighton is the priciest capital city suburb with a median weekly rent of $1,343.

Dalkeith, the affluent beach suburb of Perth comes close behind at $1,329 per week.

The riverside suburb of Hamilton is the most expensive for rental properties in Queensland, with a median $1,218 rental price.

Rental costs: How do our Aussie cities stack up?

Sydney might be home to the entire list of the top 30 most expensive suburbs for renting a property, but it doesn’t mean the city has the most expensive rental market in the country.

Sydney’s elusive suburbs drag the city’s median rental price up to $679 per week, but Canberra still remains the nation’s most expensive capital city’s rental market, with typical dwellings renting for around $681 per week, Corelogic’s data shows.

Darwin comes third in line with a median rental price of $594 per week, followed by Brisbane at $588 per week and then Perth and Hobart at $553 and $552 per week respectively.

Surprisingly, Melbourne is Australia’s most affordable capital with a median dwelling rent of $507 per week, followed by Adelaide at $518 per week.

Interestingly, Perth was the strongest-performing rental market amongst the capitals over the quarter to December last year, rising 3.2%, followed by Sydney which saw rents rise 2.8%.

Year-on-year Brisbane was the strongest performer (13.4%) followed by Adelaide (12.9%), Sydney (11.4%), and Perth (11.2%).

Despite being home to the most expensive median rental prices, Canberra saw a drop in rent prices over the month and quarter periods, and recorded the lowest rental increase over the 12-month period to December last year, at 4.3%.

Has rental growth reached its peak?

Eliza Owen, CoreLogic head of research, said December marked the second consecutive quarter that the pace of growth slowed, and it coincided with a small lift in the rental vacancy rate to 1.17% in December — up from a recent low of 1.05% the previous month.

"While a slowdown in the pace of rent rises could be a sign that the rental market is starting to shift, it's not great news for tenants just yet.

Rents are still rising in most capital cities and regional areas, with vacancy rates low."

CoreLogic data shows that regional rents have eased while capital city rents have gained ground over the fourth quarter.

In the combined regional market, where rent values rose 1.3% in the December quarter, versus 2.3% for combined capital cities.

Most regional markets continued to see a quarterly uplift in dwelling rents with the exception of the regional Northern Territory, where dwelling rents fell -0.5%.

The role reversal is likely due to a tapering in demand for regional Australia following the population surge amid the pandemic.

Recent rental pressures in regional markets appear to be easing, while the market is tightening in the major capital cities.

With the current strong demand for rental accommodation likely to grow and without a meaningful increase in rental supply on the horizon, it doesn’t look like price pressures will ease in the capital cities anytime soon.

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Tips: As an investor, it's important to remember that while you can look forward to rising rental returns, an investor’s future income will be dependent upon their tenants' ability to keep paying higher rent over the years.

After all…your future income will be dependent upon your tenants’ ability to pay you increasing rent over time.

That’s why it’s important to own properties in the right suburbs - those where the tenants will be able to afford higher rents over time rather than suburbs where the tenants are only a week or two away from going broke.

In general, these will be locations where tenants are aspirational and have a good income and are likely to have increasing income over time so they can pay you more rent.

About Leanne is National Director of Property Management at Metropole and a Property Professional in every sense of the word. With 20 years' experience in real estate, Leanne brings a wealth of knowledge and experience to maximise returns and minimise stress for their clients.
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