The postcodes with the sharpest drop in weekly rent since the beginning of the pandemic were all in trendy neighborhoods of Melbourne.
Compared to Sydney, the Victorian capital was even more reliant on international students before Australia’s border closed to foreigners in March 2020.
The 20 suburbs with the sharpest drop in weekly rents were all in downtown Melbourne as housing demand plummeted, CoreLogic data showed.
Melbourne has been locked six times in less than two years, giving it the dubious accolade of weathering the world’s longest lockdown.
The postcodes with the strongest drop in weekly rent since the start of the pandemic were all in hip areas of Melbourne (a protest in front of the state parliament against proposed pandemic laws is shown).
Because residents were confined to their houses, apartments near the city had fewer buyers.
By October 2021, median downtown weekly rents had fallen $ 91, or 18.1 percent, to $ 413 – a level of $ 6 below Melbourne’s higher median apartment rental price.
Tim Lawless, research director at CoreLogic, said the rental market in Melbourne was particularly dependent on international students before the Covid pandemic began.
“Melbourne attracted the largest number of net overseas immigrants, with a large proportion of those students and visitors moving to rental apartments in the city center,” he said.
The Australian border was also closed when new housing developments were completed near Melbourne’s central business district.
“The increase and subsequent decrease in downtown housing offers has been most evident in Melbourne,” Lawless said.
Compared to Sydney, the Victorian capital was even more reliant on international students before Australia’s border closed to foreigners in March 2020 (pictured is an empty shopping center in Docklands).
Australia’s biggest drop in rent since early 2020
Melbourne inner (units): down 22.4 percent
Carlton (units): down 18.4 percent
Southbank (units): down 18.3 percent
Docklands (units): down 16.5 percent
North Melbourne (units)
Flemington (units): minus 12.7 percent
Albert Park (units): minus 12.5 percent
East Melbourne (units): minus 12.3 percent
South Yarra West (units): down 12.2 percent
South Melbourne (units): minus 11.8 percent
Source: CoreLogic weekly rentals compared between March 2020 and October 2021, based on the boundaries of the Australian Bureau of Statistics SA2
“The larger increase in inner-city housing offers across Melbourne is likely a factor in a stronger demand shock stemming from faltering overseas migration, along with the recent construction boom that has mainly affected inner-city districts such as the Melbourne CBD and the surrounding suburbs concentrated. ‘
Central Melbourne saw the largest drop in rent, 22.4 percent, based on a breakdown by suburbs from the Australian Bureau of Statistics.
It was followed by Carlton (minus 18.4 percent), Southbank (minus 18.3 percent), Docklands (minus 16.5 percent), North Melbourne (minus 13.8 percent).
Double-digit declines were also seen in Flemington (minus 12.7 percent), Albert Park (minus 12.5 percent), East Melbourne (minus 12.3 percent), South Yarra West (minus 12.2 percent) and South Melbourne (minus 11 .8 percent) recorded cents).
Also in South Yarra East (minus 9.7 percent), Brunswick (minus 9.5 percent), Brunswick East (minus 9.4 percent), Parkville (minus 9.3 percent), Port Melbourne Industrial (minus 8.8 percent ), Caulfield (minus 8.6 percent), Clayton (minus 8.5 percent), St Kilda (minus 8.4 percent), Collingwood (minus 8.2 percent) and Armadale (minus 8.1 percent).
Mr Lawless expected rents to rise again in the inner-city parts of Melbourne when Australia’s border finally reopened to foreigners.
“Rental demand for inner-city rental housing is likely to continue to grow as the CBD and inner suburbs become more vibrant as restrictions ease and workers gradually return to work,” he said.
“Once the international borders are more fully open, the likely demand for downtown accommodation will increase more rapidly, especially as foreign students and international visitor numbers increase.”
The 20 zip codes with the sharpest drop in weekly rent were all in downtown Melbourne as housing demand plummeted, CoreLogic data showed (St Kilda pictured, where rents fell 8.4 percent).
Melbourne has been locked six times in less than two years, giving it the dubious accolade of weathering the longest lockdown in the world (pictured are the housing commission towers in Flemington, where rents have fallen 12.7 percent).