Rents in Australia have seen record increases in 2022, and this trend is evident in the five suburbs listed in Smart Property Investment’s FAST 50 report. The report, which was released in May, combines the knowledge of a 14-member investment expert panel with recent housing data to provide valuable insights into the suburbs that are poised for future growth.
In this series, SPI breaks down the FAST 50 report based on various data points. The previous articles have covered the most affordable suburbs, the highest yielding regions, the areas with the strongest price growth, and the regions that have experienced consistent growth. Now, we turn our attention to the suburbs with the highest rents, much to the delight of landlords and the dismay of tenants.
Clayfield in Queensland takes the top spot with a median rent of $750 per week. This Brisbane suburb is one of the most expensive in the FAST 50 report, and tenants will need a hefty income to secure a place to live here. With the upcoming Olympics, Clayfield, along with the rest of Brisbane, is expected to benefit from the games.
Leppington in New South Wales follows closely with a median rent of $680 per week. This south-west Sydney suburb has seen significant development over the past decade, transforming from a rural area to a thriving community. The high median house price in Leppington is reflected in its rental prices. With the Western Sydney Airport on the horizon, the area is likely to continue its growth trajectory.
Oran Park, also in New South Wales, comes in third with a median rent of $650 per week. This former raceway has experienced a surge in house prices and rental rates due to its increasing appeal to first home buyers and migrants. With thousands of new homes set to be built in the area, the growth potential seems unlimited.
Hamilton in New South Wales is next on the list with a median rent of $600 per week. Even the heart of Newcastle is not immune to rising rents. Hamilton has witnessed a significant increase in rental prices throughout 2022. Despite this, rents in the central Newcastle suburb remain below the city’s median.
Breaking the eastern seaboard’s dominance, Hammersley in Western Australia takes the fifth spot with a median rent of $580 per week. This north-western Perth suburb offers a relaxed beachy vibe while remaining well-connected to the city’s central business district.
These five suburbs represent premium rental markets in Australia, with high demand and rising rental prices. Landlords in these areas can expect strong returns on their investments, while tenants will need to be prepared for higher costs. As the property market continues to evolve, these rental markets are likely to remain strong performers.