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20 suburbs rents are set to rise: ‘Your landlord will hike’

·Personal Finance Editor
·3-min read
A sign out the front of a property in an urban suburb that indicates it is for rent and Australian currency.
Renters are finding it tough to find affordable property and housing prices rise. (Source: Getty)

It is getting increasingly difficult for Aussie renters to find affordable housing as prices continue to rise.

And suburbs once considered to be the cheaper alternative are now becoming few and far between, according to new research commissioned by HOOD.ai.

The research found the top 20 locations where landlords were likely to push up rents at the next rental review.

The quarterly HOOD.ai Tenant Report identified the top 20 suburbs in Australia where landlords held a clear advantage over tenants and where that power had increased over the past year.

The research was done by analysing rents and vacancy rates for every suburb in Australia during a 12-month period.

In all the suburbs on the top-20 ranking, rents increased at least 33 per cent during the past 12 months.

Furthermore, in all these suburbs, vacancy rates were under 1 per cent and, in some cases, actually at 0 per cent.

It should be noted that when a suburb has a vacancy rate of 0 per cent, that doesn’t mean the suburb literally has no vacant rental properties.

Rental properties are regarded as ‘officially’ vacant when they’ve been on the market for 21 days or more.

When a suburb has a vacancy rate of 0 per cent, it means all rental properties are being filled in fewer than 21 days of being listed for rent.

HOOD.ai founder and CEO Tommy Fraser said the report highlighted the issue of rental affordability.

“Vacancy rates are low in many parts of Australia, and often falling as well, which is putting upward pressure on rents,” he said.

“Traditionally, when renters get priced out of an area, they tend to shift to a cheaper suburb nearby, but that’s become increasingly hard in the current market, which is forcing tenants to move even further in search of affordable accommodation.

“If you live in any of the suburbs mentioned in this report, take note, because there’s a strong chance your landlord will increase your rent at the next rental review.”

Top 20 suburbs where rents are rising

Rank

State

Suburb

Postcode

Property type

Median weekly rent

Annual rental increase

Vacancy rate

1

NSW

Bogangar

2488

Unit

$650

52.9%

0.5%

2

QLD

Burrum Heads

4659

House

$500

51.5%

0.9%

3

QLD

Avoca

4670

Unit

$330

50%

0.4%

4

NSW

Hastings Point

2489

Unit

$650

47.7%

0%

5

QLD

Paradise Point

4216

House

$745

47.5%

0.7%

6

WA

Leeming

6149

Unit

$450

45.2%

0.4%

7

NSW

Tarrawanna

2518

House

$750

44.2%

0%

8

NSW

Colo Vale

2575

House

$600

42.9%

0%

9

NSW

Brunswick Heads

2483

House

$795

42%

0.6%

10

NT

Howard Springs

0835

House

$695

41.8%

0%

11

WA

Beechboro

6063

Unit

$380

40.7%

0.4%

12

NSW

Cooma

2630

Unit

$330

40.4%

0.6%

13

WA

Kambalda West

6442

House

$280

40%

0.6%

14

NSW

Sussex Inlet

2540

Unit

$415

38.3%

0.6%

15

QLD

Chelmer

4068

House

$685

37%

0.7%

16

NSW

Kahibah

2290

House

$600

36.4%

0%

17

VIC

Rochester

3561

House

$380

35.7%

0%

18

QLD

Chuwar

4306

House

$430

34.4%

0%

19

WA

Quindalup

6281

House

$670

34%

0%

20

QLD

Pomona

4568

House

$600

33.3%

0%

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