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Where you can still find an affordable rental close to the CBD

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The opening of cities and borders has rekindled rental demand in the capital, causing rental prices to skyrocket, but there are still relatively affordable suburbs near the CBD.

According to recent information PropTrack Market Insightsnationwide rental prices have increased by an average of 6.7% over the past 12 months.

The Greater Tokyo Area saw the largest increase in rents, with rents up 10% over the previous year.

This is due to a combination of factors.

In 2020-2021, border closures and a shift to rural areas have reduced demand for inner-city rentals.

Rents fell as a result, with some landlords offering discounts to retain tenants and others opting to exit the investor market.

Melbourne’s inner southern suburbs had some of the lowest median rental prices in the country.Photo: Getty

In 2022, students, immigrants and Australians returned to the CBD to work and study, increasing competition for inner-city rental properties and pushing prices to new heights.

However, this is not the case for all suburbs close to the city. For the most part, we’ve seen rent increases in the past year, but there are quite a few that have remained relatively affordable.

To determine the cheapest and most affordable options near the CBD, we dug into the inner-ring suburbs of each capital city, the suburbs that are the closest third to their respective city centres.

In-depth insights from PropTrack’s team of experts:

Caulfield East and Gardenvale in Melbourne’s inner south top the list with average rents of just $315 and $335 respectively.

Located within 11 km of the CBD, these suburbs, along with Essendon North, are relatively inexpensive options for potential renters.

The average rent for rentals in Leebrook, Brooklyn Park and Kilburn, less than 5 miles from Adelaide’s CBD, is between $350 and $380 per week, well below the city median of $450.

Glendalough and Osborne Park, close to Perth CBD and Rockley south of Brisbane, are also very affordable, with a median weekly rent of $370.

Rents continue to rise, especially in the Tokyo metropolitan area where demand is strong and supply problems persist.

However, there are signs that price growth is stabilizing after a record surge in late 2022.

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