Bayside renters can expect to dish out more than tenants across the rest of Melbourne and prices are predicted to keep increasing.
CoreLogic data shows it costs a median of $824 weekly to live in a house in the seaside suburbs, while those looking to rent a unit can expect to pay a median of $520 a week.
It’s the most expensive municipality for renters across Victoria.
The asking rent has jumped from $810 for houses and $500 for units in 2017, despite being a challenging period for Melbourne’s real estate market.
It costs $3900 a week to rent the five-bedroom house.
Bayside’s median asking rent is $824 a week for houses.
The median sale price for Bayside houses decreased by 4.1 per cent to $1.8 million during the same period.
Realestate.com.au general manager for rent Kul Singh said prices were impacted by softening sales conditions.
“Investors hold onto stock and look for rental yield growth, which impacts weekly rents, while buyers concerned with further declines also enter the rental market,” Mr Singh said.
Some of Melbourne’s most prestige rentals are found in the area.March 23: Jack Boronovskis’ Victorian property wrap
“These factors result in increased competition for rentals in popular areas, which often end in rental prices increasing.”
Investors are set to earn 2.4 per cent in rental yield a year on their Bayside house, which is below Melbourne’s average 3.1 per cent.
Greater Melbourne’s median asking price for houses is $430 a week, which is an increase from $420 in 2017.
6 White St, Beaumaris is on the rental market for $1600 a week.
The property includes a luxurious outdoor entertaining area.
It costs the same amount to rent in Tasmania, while Sydney, Canberra and Darwin are more expensive at $560, $550 and $500 respectively.
Melbourne units cost a median of $420 a week to rent, which is the third most expensive across the Australian capital cities, behind Sydney and Canberra.
Melton is the cheapest, with a $370 weekly asking price.
112 Beach Rd, Sandringham is for lease at $850 a week.
It’s priced close to the municipality’s median asking price.March 23: Jack Boronovskis’ Victorian property wrap
Mr Singh said inner-city pockets were more likely to have price jumps because of demand.
“We would expect to see the most popular rental destinations continue to become more expensive due to increased competition, particularly if supply of rental housing decreases as a result of the proposed Labor policies relating to negative gearing and investors,” he said.
This article was first published in www.realestate.com.au. Here is the link to the original article: https://www.realestate.com.au/news/bayside-tenants-pay-melbournes-most-expensive-rent/