In its latest report, Hood has revealed the top 20 rental markets across Australia where rents are likely to increase at the next rental review.
The report highlights a landlord’s market in the past 12 months, leaving low-income earners little to no room for negotiation. Only suburbs with legitimate rental markets with over 500 properties are included in the report.
Rent for suburbs included in the top 20 rankings increased by at least 32%, and, in most cases, vacancy rates were under 1%. In particular, Waterford, Doonan, Flaxton, Dulwich, Wulagi, North Avoca and Shoalhaven Heads had vacancy rates of 0%, but this doesn’t, however, mean there are no vacant rental properties: Hood clarified that properties are only regarded as vacant when they’ve been on the market for more than 21 days.
Although most of the suburbs are located in Queensland, New South Wales and Western Australia, Tommy Fraser, founder and chief executive officer of Hood, said there’s no clear trend where rents will rise next given the highly varied locations found in the report.
“Ever since the pandemic started, people have taken a greater interest in where they live, both in terms of the location and the type of property. That’s reflected in moving data,” Fraser said. “The interesting thing about these 20 suburbs is their diversity. There are metro waterside suburbs like Sorrento in Perth; sea-change locations like Paradise Point in Queensland; and tree-change locations like Invermay in Tasmania.”
Of the 20 suburbs, 11 are in regional locations, while nine are in the capital cities. Only Victoria had none among the eight regions.
Below are the top 20 suburbs and their median weekly rent for houses and units (marked with an asterisk), ranked in the order of likelihood for rent to increase:
