The Elysium development in Queanbeyan will bring more units to the town. Photo: Supplied Tenants have been under financial pressure this year as rents creep higher across the region. Prices have jumped annually by $30 to a median of $430 a week based on properties leased over the October 2016 quarter.
This hike could be forcing some to reassess their housing options. Falling rents in recent years allowed many tenants to get more bang for their buck by opting for a larger property or superior location as a higher volume of rental stock pushed down prices. Under current conditions, the level of new supply listings is dwindling, pushing prices up and some tenants out.
Tenants seem to be moving across the border to the centre of Queanbeyan. This makes it the No. 1 location for tenants in 2016. The biggest drawcard to the area is the lower price. Based on the 605 properties leased throughout the first 10 months of the year, tenants paid $320 a week in rent.
Kingston falls to second place, with 572 properties leased throughout the first 10 months of the year. Price is clearly the point of difference. Kingston tenants forked out a whoping $490 a week, an additional $170 a week compared with Queanbeyan residents.
Price is not the only key consideration of these two vastly different markets. Hopping over the border to Queanbeyan gives tenants a wider choice of property type. Based on properties leased this year, about two-fifths consisted of detached homes and townhouses, and units made up three-fifths. The accommodation on offer in Kingston was 94 per cent units. A broader property type obviously attracts a wider demographic, from young families, professionals and older people.
The third popular location for tenants is Belconnen, with 465 properties leased, closely followed by Braddon with 459, then Bruce at 403. Franklin was sixth with 326 properties leased, followed by Turner and Lyneham at 324 and 322. Canberra’s City Centre and Griffith complete the 10 popular locations to lease with 316 and 284 properties respectively.
As rents rise, increasing the potential return on investment, and interest rates remain at historically low levels, investing in property becomes even more enticing – it is likely that the local rental market will see further supply that should help to ease price growth.
Nicola Powell is a property expert for Allhomes. Twitter: @DocNicolaPowell. The MIX106.3 Real Estate Show, Saturdays, 9am-10am.