Over the past year, rental inventories have been tight and cost and lessor competition has intensified. Many are returning to urban life, especially in the major capitals.
However, there are some suburbs in the capital that feel less competitive for renters.
During the pandemic, many investors took advantage of record home price increases to sell their assets. Due to this trend, the supply of rental properties is in short supply, and listings in most capital cities have decreased year-on-year.
Investors’ share of new loans is rising, but it will take some time to ease supply constraints, according to the Australian Bureau of Statistics.
According to PropTrack data, demand is also very strong, with the number of potential lessees per list increasing by 20% year-on-year at the national level. This is mainly due to the increase in potential tenants in the capital as more Australians return to their offices.
Border opening is also increasing pressure in some parts of the country. Returning to Japan and short-term rents for international students contribute primarily to demand in the city center, making it even more difficult for people to secure rents.
However, this trend does not extend to all suburbs. In some areas, fewer renters are looking at available properties.
To find out where the competition for rent is the least, we looked at the suburbs of the capital, which has the fewest potential lessors per list, compared to the national median for the past year.
The ACT suburbs made up four of the top ten suburbs where it was easiest to find a rental property. Canberra City, Burton, Kingston and Braddon had 70% to 80% fewer potential renters per list than typical suburbs in the country.
Canberra has the lowest potential renters per list compared to the national median over the past year.Photo: Getty
At Lakemba in southwest Sydney and Macquarie Park near Ride in Sydney, 76% and 72% fewer renters saw available rentals, and Wentworth Point in the Cabramatta and Parramatta regions in southwest Sydney was also less competitive.
Point Cook and Melbourne City make up the rest of the list, with potential renters in both suburbs 71% below the national median.
More insights from a team of PropTrack experts:
An increase in the share of investor lending indicates that rental stock may increase, but the impact will not be immediate.
At the same time, demand may continue to rise as people returning to the city compete with returning students.
This means that many markets remain competitive and rents can continue to rise.