Melbourne becomes the CHEAPEST capital city to rent a house in Australia following mass exodus
For the first time, Melbourne is now the cheapest place to rent a house in the country.
Not only has the world’s longest lockdown affected the city’s property market, but Melbourne’s rent has remained steady while it has risen in other capital cities.
“Tenants have grappled with the longest lockdown of any city in the world and that’s really weighed on people’s decisions about where they’re going to live,’ Domain’s Chief of Economics and Research Dr Nicola Powell told 7NEWS.
“We have seen that exodus out of Greater Melbourne. Into regional areas, but also interstate as well.”
“It’s quite the title to have for Melbourne. What we’re seeing is rapidly rising rents in other capital cities where Melbourne house rents have really remained steady.
“It’s the only city that has lower asking rents now compared to pre-pandemic times – both for houses and units.”
Dr Powell said Melbourne is recording week rental growth over the September quarter and the closer to the city, the more rental properties there are.
“This really is a positive for tenants looking for a more affordable rental,” she said.
“When you have a look at inner-city unit rents, they are similar to what tenants are paying back in 2009 to 2010 – they are currently at $375 a week.
“I think this really offers prime negotiations for tenants.”
But in areas outside of Greater Melbourne, such as the Mornington Peninsula, the rental market has increased.
“We’ve got house and unit rents in the outer east, south east and Mornington Peninsula at record highs,” Dr Powell said.
“It shows it’s really about location for tenants.”