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Tenants and Sharers Look Sky-high as Demand for Apartment Living Rises

New research from realestate.com.au1 shows the number of tenants and sharers seeking an established or new rental apartment has increased to 39 per cent (up 7% from 2012).

The research indicates that younger tenants (less than 35 years) and those with household incomes between $50,000 and $99,000 are driving the search trend.

Data from realestate.com.au indicates that the following Australian suburbs have the highest number of people searching for apartment rentals over the last six months:

  1. Brisbane (QLD)
  2. Canberra (ACT)
  3. Perth (WA)
  4. Melbourne (VIC)
  5. Docklands (VIC)
  6. Southbank (VIC)
  7. Braddon (ACT)
  8. Nathan (QLD)
  9. Parramatta (NSW)
  10. Chatswood (NSW)

When deciding where to live, Gen Y tenants and sharers like to be close to the action with more than half (52 per cent) indicating they would like to find a rental property in the inner suburbs5. Baby boomers are more interested in regional suburbs with 17 per cent suggesting the regional suburbs would be the ideal location to find a rental property, compared to only 6 per cent of Gen Y.

Daniel Argent from Urban Property in Brisbane says that the rental demand for inner Brisbane apartments is increasing.

“There is definitely a high level of rental demand for inner city apartments. There are a lot of people looking for two-bedroom apartments that are close to shopping and transport. With such high demand we find that most of the properties are tenanted within two weeks of listing,” Mr Argent said.

“Applicants who provide an organised and complete application on the spot, or shortly after an open for inspection generally find that they are more successful in securing the right rental property,” he added.

Nearly half (46 per cent) of tenants and sharers indicate that one of the biggest disadvantages of renting is that home repairs and improvements are made at the discretion of the landlord. However, six in 10 tenants take it upon themselves and say they have spent their own money making improvements to a rental property.

Gen X and Baby Boomers are more likely to spend their own money making improvements to a rental property (63 per cent and 66 per cent respectively), while 52 per cent of Gen Y have spent their own money on rental property improvements.

When it comes to taking care of a rental property, 72 per cent of Gen Y tenants say they look after the property as if it were their own, but Baby Boomers appear to make the best tenants with 84 per cent suggesting they take excellent care of their rental property9.

General Manager of Sales and Operations at realestate.com.au, Arthur Charlaftis, says that the key to finding the right rental or share property is research and knowing the key statistics about the suburb or area you are considering.

“When looking for a rental property, our Neighbourhoods tool is a great research tool which provides an overview of the median rental price of each suburb, along with a demographic breakdown or the suburb.

“We’ve also just recently launched more editorial content on a range of suburbs in Sydney, Melbourne and Brisbane that helps tenants and sharers understand the lifestyle, people, typical streets and day-to-day activities and amenities an area has to offer, to help them find out if a suburb suits them,” he said.

“Along with the renting tips and guides available on realestate.com.au/blog, tenants and sharers can be well informed and in the best position to secure the right rental property in the most suitable suburb,” Mr Charlaftis added.

1 Statistics in this release reference realestate.com.au Consumer Insights Report on Tenants and Sharers, 2014

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