Australia's largest growing rental markets

A mixed bag of regional, coastal and inner-city areas have topped a national list of suburbs that have had the largest year-on-year increases in rental listings. 

At number one on the list is Moree, NSW, a major agricultural centre for the cotton industry, which had the biggest percentage increase in rental listings at 271%, going from 17 listings in January 2015 to 63 listings in January 2016.

Karen Russell, of Ray White Moree says the recent completion of a major Solar Plant, The Moree Solar Farm, would likely be behind the growth in rental listings.

“It’s been a major development taking place for the last two years,”  Russell says. “The Solar Farm is eventually going to generate solar electricity for the region.

“We’ve had a lot of contract workers working on that who were renting and now they’re moving on.”

Moore Park Beach, an outer suburb of sugar cane centre Bundaberg, came in second on the list with a year-on-year increase of 250% – 40 more listings than the last January.

Moore Park is a particularly beautiful place, with very leafy sub-tropical rainforest.

Two suburbs from Victoria made the list, leafy Greenvale 20km north of Melbourne’s CBD and trendy Collingwood, right in Melbourne’s inner north.

Dale Cleary, of Coral Coast Realty says the development along Moore Park Beach’s 16km of coastline began in the early ’90s and has seen peaks and troughs in the rental market since then. It’s now finally emerging as one of the Bay-Burnett region’s premier investor hotspots.

Moore Park has one of the only sandy beaches in Queensland’s Bay-Burnett region.

“Moore Park is a particularly beautiful place, with very leafy sub-tropical rainforest,” Cleary says.

“Investors like it because it’s very attractive. You can buy a block of land and get palm trees already established on the block. It’s not like some developments that have been completely bulldozed.

“The reason there’s been such an enormous increase in rental listings in the area is because it’s being seen as a hotspot with these kinds of investors.

“We certainly have no trouble renting the properties out either.”

With such a high concentration of rental properties in the area (around 20%) renters have a broad choice of properties, many with ocean views surrounded by tropical greenery.

Many Moore Park Beach properties sit on large blocks.

“There’s very few places in Australia where you can buy an investment property this close to the beach and this close to a provincial city for the price you can here,” Cleary says.

The same goes for renters, and most moving into the area are doing so because they love the water and find it relatively affordable.

The median rental price for Moore Park Beach is $270 per week for units and $310 per week for houses, according to realestate.com.au/Invest data for January.

Because Moore Park Beach is only a 15 minute drive from Bundaberg, commercial infrastructure was limited when residential development began 20 years ago.

But today, a recently completed shopping centre, a new hotel and public school have changed all that.

“All these things are now fully established, where as before people had to travel to Bundaberg.”

Renters moving into the area tend to be service professionals working in Bundaberg; teachers, police officers, ambulance officers and health professionals, as well as workers associated with the farm industry.

Urban lifestyle: Rental hotspots for young professionals

More choice for renters in hip Collingwood

The appeal of Melbourne’s north has not been lost on developers and investors, and Collingwood is the place where they’re cashing in their chips.

At number 10 on the list of largest growing rental markets, Collingwood has seen an increase of 177% in rental listings from 56 last January to 116 this year.

A mural at the corner of Johnston and Francis streets epitomises urban Collingwood culture. 

Damien Robertson, Operations Manager of Hocking Stuart North Melbourne says the huge increase can largely be attributed to the amount of development taking place over the past 12 months.

“There’s been several large developments going up in Collingwood, such as Smith and Co Apartments, which has around 220 units and Oxley Apartments, which has around 130 units,” Robertson says.

“Primarily it’s those large developments that have contributed to the large increase in rental listings in Collingwood.”

Robertson says renters are predominately 25 to 35-year-old professionals who value the amenities within the area.

“Renters are attracted by its close proximity to the city and readily accessible transport,” he says.

“I think there’s been a regeneration of the suburb. New cafes, new bars… it’s seen as a cool place to be.”

Sought after: What do tenants really want in rental homes in 2016?

It’s the large developments that have contributed to the large increase in rental listings in Collingwood.

The vacancy rate for rental properties in Collingwood at the moment is very low, around 0.9%.

“It’s very competitive, it’s all good stock.”

Oxley Apartments are in the heart of Collingwood’s hip centre.

Australia’s largest growing rental markets

The data shows the top 10 suburbs that have had the largest increase in active rental listings on realestate.com.au, from the week commencing January 5 2015 to the week commencing January 3 2016.

Listed by suburb, state, percentage increase in rental listings, number of active rental listings in January 2015 and the number of active rental listings in January 2016.

National

1. Moree, NSW – 271% – 63 – 17
2. Moore Park Beach, QLD – 250% – 56 – 16
3. Kirkwood, QLD  – 245% – 69 – 20
4. Byford, WA – 216% – 60 – 19
5. Campbell, ACT – 200% – 30 – 10
6. Milton, QLD – 200% – 90 – 30
7. Greenvale, VIC – 191% – 32 – 11
8. East Bunbury, WA – 190% – 29 – 10
9. Lakelands, WA – 177% – 36 – 13
10. Collingwood, VIC – 177% – 155 – 56

NSW

1. Moree – 271% – 63 – 17
2. Maryland – 118% – 24 – 11
3. Narrabri – 117% – 63 – 29

VIC

1. Greenvale – 191% – 32 – 11
2. Collingwood – 177% – 155 – 56
3. Moorabbin – 158% – 49 – 19

QLD

1. Moore Park Beach – 250% – 56 – 16
2. Kirkwood – 245% – 69 – 20
3. Milton – 200% – 90 – 30

SA

1. Roxby Downs – 129% – 195 – 85
2. Whyalla Playford – 120% – 22 – 10
3. Elizabeth Downs – 118% – 24 – 11

TAS

1. Claremont– 100% – 24 – 12
2. Rosebery – 80% – 27 – 15
3. Newstead – 43% – 33 – 23

WA

1. Byford – 216% – 60 – 19
2. East Bunbury – 190% – 29 – 10
3. Lakelands – 177% – 36 – 13

NT

1. Millner – 140% – 36 – 15
2. Larrakeyah – 66% – 63 – 38
3. Muirhead – 64% – 23 – 14