Cheapest Capital City Suburbs To Rent Today
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Cheapest Capital City Suburbs To Rent Today

Australia is in the midst of a rental crisis, with weekly rents rising 30% over 38 consecutive months

By Bronwyn Allen
Thu, Nov 2, 2023 11:23amGrey Clock 3 min

It costs a median $616 per week to rent a property across Australia’s combined capital cities, with rents rising 10% over the past 12 months alone, according to new CoreLogic data. The cost is lower across the combined regions a median of $507 per week, up 4.1% over the past year.

Rents across Australia have risen by 30% over 38 consecutive months, adding $137 per week to the median cost of renting. The number of properties being advertised for rent fell to its lowest level in more than 10 years during the September quarter. A rental vacancy rate of 3% is considered a balanced market but rates are now at record lows of 1% in the capitals and 1.2% in the regions.

CoreLogic Economist Kaytlin Ezzy said record high net overseas migration and an estimated shortfall of 47,500 rental homes were pushing rental values higher. However, she noted that the pace of rental growth is starting to slow, with national rents rising 1.6% in the September quarter compared to 2.2% in the June quarter, as renters hit an affordability ceiling.

Ms Ezzy said more renters were banding together to form larger households to share the burdensome cost – a trend that is creating stronger demand for rental houses, in particular. “There is already some evidence that a structural change in household formation, coupled with worsening affordability in the unit sector, has shifted some rental demand back in favour of the low-density sector,” Ms Ezzy said. “National house rents are now rising faster than unit rents … reversing the trend seen through much of 2022 and the first half of 2023.”

CoreLogic has published a report revealing the cheapest suburbs to rent in within a 20km radius of capital city CBDs. The list below shows the current median weekly rent in each suburb.

Cheapest rents within 20km of CBDs

Sydney houses

Auburn $648 pw

South Granville $657 pw

Granville $673 pw

Regents Park $675 pw

Sefton $676 pw

 

Sydney apartments

Berala $486 pw

Wiley Park $491 pw

Punchbowl $498 pw

Lakemba $501 pw

Regents Park $509 pw

 

Melbourne houses

Albanvale $441 pw

Laverton $441 pw

Broadmeadows $441 pw

Kings Park $442 pw

Ardeer $443 pw

 

Melbourne apartments

Albion $366 pw

St Albans $398 pw

Deer Park $406 pw

Kingsville $411 pw

Thomastown $420 pw

 

Brisbane houses

Woodridge $501 pw

Inala $503 pw

Ellen Grove $523 pw

Darra $526 pw

Rocklea $544 pw

 

Brisbane apartments  

Woodridge $352 pw

Rochedale South $436 pw

Strathpine $446 pw

Brendale $459 pw

Alexandra Hills $468 pw

 

Adelaide houses

Salisbury $473 pw

Braham Lodge $475 pw

Salisbury Downs $478 pw

Paralowie $498 pw

Taperoo $502 pw

 

Adelaide apartments

Salisbury East $361 pw

Salisbury $378 pw

Kilburn $397 pw

Klemzig $402 pw

St Marys $403 pw

 

Perth houses

Girrawheen $491 pw

Gosnells $501 pw

Midland $503 pw

Middle Swan $518 pw

Koondoola $519 pw

 

Perth apartments 

Midland $433 pw

Gosnells $441 pw

Noranda $445 pw

Hamilton Hill $457 pw

Coolbellup $462 pw

 

Hobart houses

Bridgewater $485 pw

Midway Point $501 pw

Chigwell $501 pw

Claremont $509 pw

Berridale $516 pw

 

Hobart apartments

Claremont $411 pw

West Moonah $422 pw

Glenorchy $431 pw

Lindisfarne $456 pw

New Town $463 pw

 

Canberra houses

Higgins $597 pw

Scullin $598 pw

Page $599 pw

Charnwood $599 pw

Holt $599 pw

 

Canberra apartments

Lyons $468 pw

Chifley $494 pw

Hawker $501 pw

Mawson $528 pw

Gungahlin $529 pw

 

Darwin houses

Moulden $539 pw

Gray $549 pw

Driver $564 pw

Woodroffe $587 pw

Bakewell $591 pw

 

Darwin apartments 

Bakewell $457 pw

Leanyer $468 pw

Coconut Grove $475 pw

Millner $478 pw

Rapid Creek $494 pw

 



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New research suggests spending 40 percent of household income on loan repayments is the new normal

By Bronwyn Allen
Thu, Apr 25, 2024 3 min

Requiring more than 30 percent of household income to service a home loan has long been considered the benchmark for ‘housing stress’. Yet research shows it is becoming the new normal. The 2024 ANZ CoreLogic Housing Affordability Report reveals home loans on only 17 percent of homes are ‘serviceable’ if serviceability is limited to 30 percent of the median national household income.

Based on 40 percent of household income, just 37 percent of properties would be serviceable on a mortgage covering 80 percent of the purchase price. ANZ CoreLogic suggest 40 may be the new 30 when it comes to home loan serviceability. “Looking ahead, there is little prospect for the mortgage serviceability indicator to move back into the 30 percent range any time soon,” says the report.

“This is because the cash rate is not expected to be cut until late 2024, and home values have continued to rise, even amid relatively high interest rate settings.” ANZ CoreLogic estimate that home loan rates would have to fall to about 4.7 percent to bring serviceability under 40 percent.

CoreLogic has broken down the actual household income required to service a home loan on a 6.27 percent interest rate for an 80 percent loan based on current median house and unit values in each capital city. As expected, affordability is worst in the most expensive property market, Sydney.

Sydney

Sydney’s median house price is $1,414,229 and the median unit price is $839,344.

Based on 40 percent serviceability, households need a total income of $211,456 to afford a home loan for a house and $125,499 for a unit. The city’s actual median household income is $120,554.

Melbourne

Melbourne’s median house price is $935,049 and the median apartment price is $612,906.

Based on 40 percent serviceability, households need a total income of $139,809 to afford a home loan for a house and $91,642 for a unit. The city’s actual median household income is $110,324.

Brisbane

Brisbane’s median house price is $909,988 and the median unit price is $587,793.

Based on 40 percent serviceability, households need a total income of $136,062 to afford a home loan for a house and $87,887 for a unit. The city’s actual median household income is $107,243.

Adelaide

Adelaide’s median house price is $785,971 and the median apartment price is $504,799.

Based on 40 percent serviceability, households need a total income of $117,519 to afford a home loan for a house and $75,478 for a unit. The city’s actual median household income is $89,806.

Perth

Perth’s median house price is $735,276 and the median unit price is $495,360.

Based on 40 percent serviceability, households need a total income of $109,939 to afford a home loan for a house and $74,066 for a unit. The city’s actual median household income is $108,057.

Hobart

Hobart’s median house price is $692,951 and the median apartment price is $522,258.

Based on 40 percent serviceability, households need a total income of $103,610 to afford a home loan for a house and $78,088 for a unit. The city’s actual median household income is $89,515.

Darwin

Darwin’s median house price is $573,498 and the median unit price is $367,716.

Based on 40 percent serviceability, households need a total income of $85,750 to afford a home loan for a house and $54,981 for a unit. The city’s actual median household income is $126,193.

Canberra

Canberra’s median house price is $964,136 and the median apartment price is $585,057.

Based on 40 percent serviceability, households need a total income of $144,158 to afford a home loan for a house and $87,478 for a unit. The city’s actual median household income is $137,760.

 

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