Despite the tightening of rental conditions throughout the year, the latest figures from Allhomes indicate that tenants can still bag a bargain in the territory.
The district of Belconnen dominated the ten affordable suburbs to lease a family home, with Latham and Ngunnawal having the lowest median price of $400 a week. This was followed by Isabella Plains at $410 and Queanbeyan East at $415. Other suburbs with a median rental price of $420 a week were Calwell, Evatt, Holt, Karabar, Page, and Scullin.
As for those who are opting for the lower price of a unit, Greater Queanbeyan emerged on top of the ten most affordable suburbs to lease a unit. Queanbeyan East had the lowest median price at $225 a week, followed by Crestwood at $240 and Queanbeyan at $260.
These suburbs remain affordable in spite of the shrinking supply and consistent demand that has put pressure on rental prices. The ACT and Queanbeyan median weekly rent increased by five per cent over the year to reach $420 a week during the May 2016 quarter.
However, building and unit approvals remain strong, and these could likely take some heat out of the current rise in prices. These provide a good indication of the potential future supply level.
It is also expected that interest rates might be cut once more this year, particularly in August. This could ignite investor activity, adding more stock to the market and pulling rents down.
With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now