This article was originally published by Samantha Landy on JANUARY 9, 2018 via news.com.au
LUXURY rental homes are in high demand in blue-chip Melbourne, with new data showing deep-pocketed tenants are paying exorbitant weekly rates to rent in Toorak and Brighton.
Deep-pocketed tenants splashed a median rate of $1400 per week to lease houses in Toorak in the past year, easily making it Melbourne’s priciest suburb for rentals.
Brighton and Canterbury weren’t far behind, attracting median weekly rents of $995 and $990 respectively in the year to November 30, according to CoreLogic data based on advertised rates.
Tenants also paid more than $800 a week on average to rent houses in Black Rock, Hampton, East Melbourne, Beaumaris, Middle Park and Armadale.
Docklands boasted the city’s most expensive rental units with a $575 weekly median, followed by Beaumaris ($568), Cremorne ($560) and Port Melbourne ($551).
JP Dixon Real Estate head of property management Brad Graham said there was a large tenant pool for substantial houses with substantial price tags in blue-chip Melbourne.
It included people who had recently sold homes for significant prices but hadn’t found the right property to buy, and people moving to Melbourne for work from interstate whose employers paid a portion of or the entirety of the rent, he said.
Mr Graham also regularly leased high-end houses to people carrying out substantial renos on their own homes.
“We signed a lease off-market before Christmas involving homeowners in Brighton looking at doing a major renovation that will take in excess of a year, so they’ve gone and rented a fairly substantial house around the corner so they can monitor the reno,” he said.
“We do a lot of off-market deals for rentals — there are definitely people out there looking for high-end rentals.”
The agent is currently seeking a tenant for a grand four-bedroom house at 59 North Rd, Brighton for an eye-watering $3500 per week.
He said this figure was “at the top-end” when it came to Brighton rentals, but he’d seen tenants pay more.
The property is just blocks from the beach and features a lift, chef’s kitchen with Gaggenau appliances and a lavish master bedroom with a fireplace and ensuite with a freestanding bath.
Mr Graham said high-end tenants in Melbourne were looking for “all the mod-cons”, top quality appliances, finishes and fittings and, ideally, a pool.
On the other side of the spectrum, Yarra Ranges town Millgrove and neighbouring Melton and Melton South all offered Melbourne’s lowest median rent of $300 per week.
Doveton and Kurunjang ($310), Warburton ($315), Coolaroo and Frankston North ($320) were also good value for tenants.
Albion and Melton South were the cheapest places to rent units, with weekly medians of $250 and $260 respectively.
RENTING IN MELBOURNE
Most expensive median rates
Toorak: $1400 per week
Black Rock: $895
Hampton, East Melbourne: $850
Docklands: $575 per week
Port Melbourne: $551
Brighton East, Brighton: $550
Most affordable median rates
Millgrove, Melton, Melton South: $300 per week
Doveton, Kurunjang: $310
Coolaroo, Frankston North: $320
Melton West: $325
Albion: $250 per week
Melton South: $260
Source: CoreLogic, based on median weekly advertised rents in the year to November 30, 2017