Altona North has recorded the fastest rising rents for units in Melbourne.
Domain Group senior economist Andrew Wilson said the median rent in Altona North had risen 28.1 per cent to $365 a week in the six months to September.
“There’s a perception, perhaps, that it’s gone under the radar a little bit,” Mr Wilson said.
“There’s good, solid local amenities, still pretty close to the city and, you know, Altona does have a beach. I think Altona, Newport, these areas, have just been to one side and I think there’s a discovering of these areas as being affordable.
“I used to go down to Altona and Newport when I was young and I had friends who lived there, and it was always a bit of a working class, edgy sort of place. But I think it’s shaken that off quite considerably … and now it’s all part of that growing desire to be closer to the city and have an established neighbourhood environment,” Mr Wilson said.
Tony Gerace, sales director of Burnham Real Estate, said he believed Altona North was taking off because investors and developers were concentrating on the suburb.
“There’s newer, bigger properties, townhouses, that are being offered which are probably $50 or $100 a week more expensive than your older established homes that were sitting there.
“Because the real estate market’s been so healthy and strong lately, everyone’s been doing developments.”
REIV chief executive Enzo Raimondo said the increases in rental income in Altona North reflected a significant interest in the inner west.
“Altona North has seen a house price increase of almost 15 per cent in the past 12 months, to a median price of $660,000,” he said.
“Clearly there’s strong buyer interest, and the higher rental income in Altona North reflects a similarly strong interest from tenants in this area. Altona has also seen strong growth, with the median price of units and apartments now $535,000.”
