Bayside has the most expensive rent across Victoria, and values are forecasted to continue increasing, according to an article published on realestate.com.au
A house for rent in the seaside suburbs costs a median of $824 weekly, while units for rent are priced at a median of $520 a week, said CoreLogic.
The asking rent has climbed from $810 for houses and $500 for units in 2017, despite being a challenging period for Melbourne’s property market.
The property information provider also showed that the median sale price for Bayside houses dropped by 4.1% to $1.8 million during the same period.
“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,” said Kul Singh, realestate.com.au general manager for rent.
The factors lead to higher competition for rentals in known areas, which pushes values to track upwards.
The rental yield per year on Bayside houses is 2.4%, which is lower than the 3.1% average in Melbourne.
Greater Melbourne’s median asking price for houses is $430 a week— up from $420 two years ago.
Tasmania requires the same rent as in Greater Melbourne, while Sydney, Canberra, and Darwin are more expensive at $560, $550, and $500 respectively.
Melbourne units are valued at a median of $420 a week to rent, which is the third most expensive across the Australian capital cities, followed by Sydney and Canberra.
Melton, meanwhile, is the cheapest, with a $370 weekly asking price.
Inner-city pockets were more likely to post price increases due to demand, according to Singh.
“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.
