Ballarat Central could be the next suburb to experience a boom in rental pricing, according to Ballarat Real Estate general manager Allister Morrison.
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Findings from Australia’s first ever Rental Affordability Index have Ballarat Central listed as a surprise inclusion into the city’s most affordable suburbs, alongside stalwarts Sebastopol, Wendouree, Redan and Canadian.
Mr Morrison said the potential for rapid gentrification – the buying and renovating of houses to increase property values – could spread rapidly throughout the city’s inner streets, offsetting the current low rates which are maintained by the sheer quantity of old stock.
Despite the concern over a lack of affordable housing in Ballarat, Mr Morrison says a strong investor market has kept “reasonable” supply and demand levels.
“There’s a reasonable amount of stock in Ballarat at the moment. It’s not so much stock that can’t be met, but it’s a good choice for tenants,” Mr Morrison said.
“With the median rental being at $280-per-week, it’s pretty comparative to capital city markets and pretty affordable.”
“Rental yields will still be pretty attractive in Ballarat – if there’s more investors buying properties it will keep the yields steady and the rent steady.”
Real Estate Institute of Victoria statistics reveal Ballarat’s vacancy rates remain stable at 3.2 per cent for October, favourable to Melbourne’s 3.7 per cent rate.
Mr Morrison said the high levels of new stock in areas such as Lucas had rental prices in Alfredton rising, with zoning characteristics also contributing.
“Some of these areas like Invermay Park and Alfredton are at the top of (the most expensive suburbs list), because there’s newer, bigger houses – then there’s zoning characteristics with (access to) schools and shopping facilities (also a factor),” he said.