Melbourne now cheaper to rent than Hobart

The collapse of international migration and the exodus of Melburnians to greener pastures has driven house rents in Australia’s second biggest city to the equal lowest in the nation, according to Domain’s latest rental report.

As shown in the table below, the median asking Melbourne house rent is now only $430 per week. That’s unchanged over the year, the equal lowest with Adelaide, and well below the nation’s three smallest capitals – Hobart ($495), Darwin ($593) and Canberra ($630):

Weekly rents

Cheap Melbourne rents.

Inner Melbourne house rents have also suffered heavy falls over the past year:

Inner Melbourne house rents

Bigger falls across the inner suburbs.

Melbourne’s asking unit rents have also fallen heavily – hit hardest by the loss of international students:

National weekly rents

Collapsed immigration (international students) drives down unit rents.

Accordingly, Melbourne now has the second cheapest rental market ($365 a week) behind Adelaide ($350 per week).

Like for houses, the inner apartment market has been hit hardest:

Melbourne units

Falling like a stone.

This report illustrates just how reliant Melbourne’s property market and economy have become on overseas migration. The city is the epitome of a population ponzi economy.

Unconventional Economist

Comments

  1. alwaysanonMEMBER

    Maybe because people would rather live in Hobart than Melbourne these days 😉

      • Hobart rent prices were driven by a sudden mass influx of so called international students in lowered entry standards and checks..

        From 2,400 to over 9,000 (all foreign language & international course providers, Uni Tasmania to institutes colleges and academy scams prostituting themselves for a third world migrant guestworker visa alibi.
        Country of origin (Tas education website)
        China, India, Vietnam, Korea, Thailand, Nepal..

        👉🏾No one built housing for that extra 7,000 plus foreign students, partners, regional visas etc.

        And so the low end Australian established dwellings units & modest little houses that were typically rented out to locals – they were quickly gobbled up by Chinese & other foreign national PR to avoid FIRB and then converted to migrant only cash in hand bunk share.

        Tipping those Australian renters & families out onto the street.
        No vacancy – and rent price hikes for everyone else..
        Homelessness, Australians living on the street.
        Then the migrant guestworkers stolen their jobs.
        Unemployed went up. Wages down. The black market migrant guestworkers ‘foreign students’ working illegally destroyed their housing, their employment and also their Australian youth opportunities in education.

        🔻Tasmania Hobart is a microcosm of what’s been happening across all our Australian cities as the education industry prostituted itself for a third world migrant visa alibi.

        Where exactly do people think the 9,000 or so third world migrant guestworkers in Hobart on foreign student or partner, regional worker or other visa scams live?

        Here’s the economics :
        Hobart average rent & occupancy
        Australians (was – ABS)
        House 3.5 people occupancy $380 rent week
        Unit 2.3 people occupancy $240 rent week

        Foreign students / partners migrant guestworkers
        House 9 people @ $150 each in migrant only bunk share = $1,350 week – 3.5 x Australian renters
        Unit 6 people @ $140 each in migrant only bunk share = $840 week. Again 3.5 x what Australians can pay.

        Paid in cash – sublet, the lease to a long disappeared TR & via an foreign agent letting to have deniability the PR owner knew it was being sublet.

        Only a minimal rent declared if any / all cash
        Chinese or foreign national PR repays the foreign criminal syndicate that purchased the dwelling.

        Negative gearing also claimed by the foreign landlord PR as a kicker.

        There is your root cause of Australians being forced out by the migrant influx & Australian homelessness.

        • Amery Jackson

          Yet Hobart rental vacancies are at an all time low, even after the students have returned home due to covid?

  2. kannigetMEMBER

    I was talking to the Property Manager a few weeks back at my semi bi-annual rental inspection. She said that they have had a lot of property taken off the rental market after the lockdowns in Canberra were lifted. Many of them have moved to private rental arrangements or put on the market to sell.

    She also complained that they legally can only put rent up by CPI + 5% of CPI each year. So if CPI is 5% then they can raise the rents by 5.25%, or $500 raised to $526.25. But CPI has been too low for years, so when they have to release a property they have to factor this in and ask for a lot more to try and recoup what they “lose” over the course of the lease.

    Canberra historically has had a fairly strong transient population, 3 year military postings, Strong university contingent and people escaping the bigger cities who realise Canberra gets cold and leave for somewhere else. What this means is that rental competition has been really strong from November to march, and new rentals attract high prices and then that locks it in as the base.

    Due to COVID we have had a large increase of interstate arrivals, but the student contingent is absent so my guess is that the stupidly high rental asking prices in Canberra are mostly wishful thinking of out of touch landlords ( who are mostly public servants).

    Personally, whenever I decide to move I do it mid year, lots more property to choose from and I have always negotiated the rent down at least 10%.

  3. Anders Andersen

    I have doubts about the Perth increase, if it’s accurate then it must be on low turnover. I’ve been in my place (3/2 villa) for 4.5 yrs on $380 pw and went out of lease at the end of May. When the lease ended it took them weeks to call me and indicated I could expect a 10% increase, they just called me the other day and enquired again about my intentions on the lease. I again explained I was looking at vacating and they’ve given me another week to think about it. They have to give me 60 days notice of a rent increase!

    Out of curiosity I looked at the vacancies on Realestate.com.au (6107 & 6148), 15 vacancies with only three on available dates, the rest available now. Admittedly 15 (13 today) is less than the norm of recent past of around late 20s to early 30s, but 75 to 80% have gone past their notice period (2 wks) to now be vacant and remain unlet and the others are only a few days away from being vacant. It would appear the asking rent is up close to 20%, but I wonder how that’s working given the so called low VR is still seeing these places available.

  4. the median asking Melbourne house rent is now only $430 per week

    Only $430 per week to rent shelter. And can anyone tell me how many dollars per week a retired person has to live on?

    Do they have only $930 per week to cover all expenses?
    Do they have only $830 per week to pay for food, etc?
    Do they have only $730 per week to pay for medicines, etc?
    Do they have only $630 per week to pay for clothes, etc?

    Can someone fill me in here please? I trying to get some perspective on the cheapness of these houses.

  5. Mining BoganMEMBER

    NE have definitely dropped except for a couple of desirable school zones. Just having a look and we’re paying 5-10% too much, and that’s on top of rent not rising for three years.

    Probably worth it to have a decent landlord though.