20 capital city markets where conditions favour renters

By Juliet Helmke

February 23 2022
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Rental markets may be tightening in many places, but suburbs remain where renters have somewhat of an upper hand, and according to new research, they’re all in Victoria, NSW and the ACT.

RentRabbit.com.au has identified the top 20 capital city rental markets where conditions have most turned in favour of renters over the past 12 months.

The company’s quarterly Better Renting Report identified where vacancy rates have increased by at least 1 percentage point over the past year and where median weekly rents have either fallen or remained unchanged during that period.

To make the list, they also needed to be large enough – containing at least 1,000 properties – and within 200 kilometres of the capital city CBD.

The only suburbs that qualified fell within Victoria, NSW and the ACT, which RentRabbit.com.au co-founder Ben Pretty said indicated “the two-tier nature of Australia’s rental market”.

“The RentRabbit.com.au Better Renting Report highlights that renters are able to find tenant-friendly suburbs in Melbourne, Sydney and Canberra, but are really struggling to find suitable locations in Brisbane, Perth, Adelaide, Hobart and Darwin,” he said.

“This is all about supply and demand. Where supply is relatively low and demand relatively high, it’s hard for tenants to find accommodation, which leads to falling vacancy rates and rising rents.

“For the sake of families and people on average incomes, I’d like to see a more balanced rental market. For that to happen, supply needs to increase, which means we need more investors to enter the market and more new builds to come online.”

Ultimately, the top 20 ranking included 12 house markets and eight unit markets. All the suburbs had a vacancy rate of at least 2 per cent, while weekly rents ranged from $310 to $850.

The top 20 renter-friendly locations, along with their property type and rental vacancy, are:

Derrimut, Vic, House, 10.30 per cent
Mount Duneed, Vic, House, 7.10 per cent
West Pymble, NSW, House, 5.50 per cent
Campbell, ACT, Unit, 8.50 per cent
Hughes, ACT, House, 4.10 per cent
Girraween, NSW, Unit, 4.00 per cent
Heckenberg, NSW, House, 2.00 per cent
Coolaroo, Vic, House, 5.00 per cent
Pendle Hill, NSW, House, 4.50 per cent
Cabramatta West, NSW, House, 3.90 per cent
Dingley Village, Vic, Unit, 2.60 per cent
Berala NSW, Unit, 3.70, per cent
McKellar, ACT, House, 3.00 per cent
Emu Plains, NSW, Unit, 2.60 per cent
Bannockburn, Vic, House, 2.90 per cent
Notting Hill, Vic, Unit, 3.20 per cent
Campbellfield, Vic, House, 3.10 per cent
Kingsville, Vic, House, 2.60 per cent
Oak Park, Vic, Unit, 3.70 per cent
Ivanhoe East, Vic, House, 3.10 per cent

About the author

Juliet Helmke

Maja Garaca Djurdjevic is the editor of nestegg and Smart Property Investment. Email Maja at [email protected]

About the author

Juliet Helmke

Maja Garaca Djurdjevic is the editor of nestegg and Smart Property Investment. Email Maja at [email protected]

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