Northern Sydney and a Western Australian mining hub in the Pilbara have the best suburbs to invest in for landlords due to their rent levels.
Real estate consultancy RP Data has released a new study showing that Sydney and Western Australia are the best places to buy property for investors seeking to shore up revenue streams with high rental income.
Five of the 10 most expensive suburbs for renters are situated in Western Australia, while the rest are located in either the North Shore or the Eastern Suburbs of Sydney.
Despite its distance from the rest of the country and the remote location of some of its entries on the list, Western Australia is prominently represented amongst the nation’s most expensive rental suburbs due to the increased cost of living brought to the mineral-rich state by the mining boom.
At the very top of the list was the seaside suburb of Port Hedland – the second largest town in the Pilbara region of Western Australia, situated 1,322 kilometres to the north-east of Perth. Despite its remarkable distance from other major population centres, median weekly advertised rental rates of $1,775.
Two other Pilbara mining towns, Newman and South Hedland, also featured amongst the top five most expensive suburbs, taking second and fourth place on the list with median weekly rent of $1,500 and $1,350 respectively.
The Sydney North Shore suburb of Mosman tied with Newman in second place with median weekly rent of $1,500 as well, while Woollahra in the Eastern Suburbs took fifth place weekly rent of $1,300.
Baynton and Nickol, both suburbs in the Pilbara town of Karratha which adjoins the port of Dampier, are Australia’s sixth and seventh most expensive rental suburbs, with median weekly rent of $1,200 and $1,100 respectively.
The Sydney suburbs of Seaforth, Roseville and St Ives round out the top ten list, with weekly rent ranging between $1,000 and $1,095.
According to RP Data, while growth in rental levels for houses has been relatively modest across Australia at a whole, at an average of 2.6 per cent over the year to June 2014, regional growth has varied tremendously.
In Sydney, house rental levels leaped by 4 per cent during the period, while in Perth a sharp decline of five per cent was logged.