www.realestate.com.au | 17 Oct 2018 | Euan Black| Writer
Seven of Australia’s 10 most in-demand rental suburbs in Australia are in Melbourne, new data from realestate.com.au has revealed.
Richmond and Fitzroy North were the city’s most popular suburbs for renters in the six months to 30 September 2018, registering 3907 and 3775 views per listing respectively.
Epping, Collingwood, Preston, Fitzroy and Abbotsford were the other Melbourne suburbs to make the top ten, which was topped by South Australia’s Andrews Farm and rounded out by Hobart’s Moonah and the Gold Coast’s Burleigh Heads.
Australia’s 10 most in-demand suburbs
1. Andrews Farm, SA
2. Richmond, VIC
3. Fitzroy North, VIC
4. Epping, VIC
5. Collingwood, VIC
6. Preston, VIC
7. Fitzroy, VIC
8. Abbotsford, VIC
9. Moonah, TAS
10. Burleigh Heads, QLD
According to realestate.com.au’s Chief Economist Nerida Conisbee, changes in rental demand on a city level are largely dependent on jobs creation, whereas changes on a suburb level can largely be attributed to the shifting tastes and preferences of young renters.
“A lot of it is determined by the fact that the majority of renters are young people – most are under 35. So suburbs that are typically high in demand among renters tend to be areas that are quite a lot of fun,” she says.
“If you look at Collingwood, Fitzroy North and Burleigh Heads, they tend to be places where young people want to be.”
However, the data is also somewhat skewed by the level of supply, as the fewer listings in each suburb, the more viewings each listing will likely receive.
“Very high levels of apartment construction can effectively reduce demand, if you’re measuring by views per listing,” says Conisbee. “You’ll notice the list is dominated by areas in Melbourne that haven’t seen particularly high levels of construction.”
Limited supply goes a long way towards explaining why Andrews Farm ranked as Australia’s most in-demand rental suburb. The affordable suburb, 29km northeast of Adelaide’s CBD, currently only has 19 listings on realestate.com.au/rent, a number that Conisbee believes is indicative of the low levels of investment currently seen across Adelaide’s urban fringe.
“It might also be that the jobs being created in Adelaide are low income and as a result low income areas are on the up,” she says of Andrews Farm’s popularity.
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Source: Black, Euan. “Are You Renting in Australia’s Most in-Demand Suburb?” Www.realestate.com.au, 17 Oct. 2018, www.realestate.com.au/news/renting-most-in-demand-suburb/