The latest CoreLogic data shows that surging demand for rental supply has resulted in more than 22% increases within some inner-city Melbourne suburbs. This CoreLogic data reflects trends in the past 12 months, with more increases expected as vacancy rates tighten - presenting an opportunity for property investors.
Data shows that apartments in inner Melbourne notched up the most significant rise in median weekly rents during the year, with Docklands soaring by 22.2%, Southbank by 21.6%, West Melbourne by 20.5% and Melbourne city by 17.7%. In Sydney, median rents for Pyrmont apartments jumped 16.9%, Ultimo 14.6% and Haymarket 14.3% during the same period.
Tim Lawless, Head of Research at CoreLogic, commented to the AFR that many inner-city rental apartment markets had recovered from their pandemic lows. “These inner-city precincts are bouncing back strongly now off the back of rising demand against rapidly tightening vacancy rates,” he said.
“Demand for inner-city rental accommodation is now being driven by a spillover from the lower density sectors of the rental market, where high rents and rental affordability are pushing more renters to consider an inner-city higher-density option.”
“This renewed level of demand is being amplified by recently opened borders with overseas students and visitors and permanent migrants adding to rental demand. Additionally, as inner-city precincts become more vibrant as workers return to offices and Covid-19 related restrictions are eased, inner-city areas are likely to become more popular.”
At the height of the pandemic, inner-city precincts of Melbourne and Sydney were among the hardest hit due to border closures and mass migration away from the city.
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