Across the city,40 suburbs recorded house and unit rent rises of 10 per cent or more,Domain’s latest rent report,shows. Hundreds more suburbs had rents rise by at least 5 per cent.
Melbourne’s overall house rents rose to a record $470 per week as more tenants have been returning to the market,including young adults who delayed moving out of home,tenants in share houses who sought their own space to work from home,and returning interstate and international migrants.
Some potential tenants are offering $50 or more extra rent each week to secure a property,agents say.
The biggest increases were in suburbs that had emptied during COVID-19 lockdowns,including Docklands,where unit rents skyrocketed by 20 per cent to a median $480 per week. Unit rents in Melbourne’s CBD soared by 19.4 per cent to $430.
Domain chief of research and economics Dr Nicola Powell said these suburbs had mostly regained what was lost during COVID,when students and migrant workers were kept out of the rental market by border closures.
Unit rents in Docklands have jumped by 20 per cent over the past year.Jessica Shapiro
“We continue to see strong rental growth,especially in student-friendly suburbs like the Docklands and Melbourne’s CBD,” Powell said. “What we should expect is that rents will grow next year as more international workers and students return.”
Lucas Real Estate Docklands director Dylan Emmett said skilled migrants were moving back to the suburb,bringing rents back up to where they were in 2019.
“We would have more migrant workers filling apartments than any other groups,” Emmett said. “With people returning to the office,it’s also brought a lot of people back – they’re seeing the value of living close to where they work.”
Though some were moving back to the city,others were looking for larger properties in middle and outer suburbs. The biggest rise in house rents was in the sought after beachside suburb of Black Rock,where rents soared by 19.2 per cent to $995 per week.
In Beaconsfield,in the south-east,house rents jumped 15.5 per cent to $485 per week.
“Some people can still work from home and in the office,in a hybrid kind of way,and that has seen people move and stay further away from the city,” Powell said.
Ray White Cheltenham rental department manager Suzanne Younes said houses and townhouses in middle suburbs such as Mentone and Edithvale were in hot demand from those looking to upsize from an apartment.
“People are offering more for rent or offering to pay rent in advance,like three or six months in advance,to get a property,” Younes said. “They offer an extra $50 a week because they see so many people at the opens and want to beat the competition.”
Vivianne Rodrigues offered an extra $75 per week in rent to ensure she could secure her house in Mentone.Paul Jeffers
Vivianne Rodrigues,41,offered $75 more per week to secure a rental she moved into last month in Mentone. In the suburb,rents have gone up 10 per cent in a year.
Rodrigues had been renting a house in Clayton,but was forced to move when it was listed for sale. The single mum,who owns a hairdressing business in St Kilda East,wanted to find a property that could cater for her children and still be close to work.
“I looked at lots of homes,and they were not as good,so I offered extra for this one,” she said.
“I spent so much moving and cleaning the house and getting set up,so I hope to live here for a long time.”
Rents fell in a handful of smaller or more expensive suburbs,such as Macleod units (down 27.3 per cent to $240 a week) or Toorak houses (down 7.1 per cent to $910).
But those falls are in the minority,and mean little to people who are struggling to find affordable rentals.
Australian Council of Social Services deputy chief executive Edwina MacDonald said the rising cost of living and rising rents were hurting those on low incomes.
A recent ACOSS showed 96 per cent of people renting privately are in rental stress,paying more than 30 per cent of their income in rent.
“Our survey showed that almost half of private rents have had a rent increase in the past six months,with a third reporting rents rising by $30 a week or more,” MacDonald said.
ACOSS called on governments to increase JobSeeker from $48 to at least $73 a day,increase Commonwealth Rent Assistance and invest substantially in social and affordable housing.