Cheaper prices and higher rental yields are attracting property investors out west.
According to the Australian Bureau of Statistics, the proportion of renters in Wyndham has increased from 25.2 per cent in 2011 to 28.6 per cent in 2016.
In comparison, the proportion of renters across the state increased by 2.2 percentage points over the same period.
More than a quarter of Wyndham properties (28.6 per cent) are now rented out. The majority of Wyndham properties (48.4 per cent) are owned by people still paying off their mortgage, and 20 per cent of Wyndham properties are owned outright.
REIV chief executive Gil King said lifestyle choices, low wages growth and availability of quality properties made Wyndham popular among renters, prompting rental demand.
“Investors are increasingly looking to outer suburbs such as those in Wyndham for a range of reasons,” he said.
“These include the more affordable options they offer compared with middle and inner areas, the growth in median house prices – and therefore their investments – in these suburbs or because they want investment properties closer to their own place of residence.”
Tony Bevacqua, co-founder of construction company 360 Built, said there had been a gradual shift towards investors favouring properties between 20-30 kilometres out of the city.
“What we are finding is that punters with a budget of around $500,000 are opting for new homes, in suburbs such as Williams Landing, which boast three bedrooms, two bathrooms and a two-car garage, over a one-bedroom off-the-plan apartment in the CBD,” he said.
“We have found that growing suburbs in the west … will yield a rental return of around $440-$480 per week, compared to the one-bedroom apartment in the CBD which brings in $380-$420 per week.”
YPA Werribee director Bassam Tofaili said he had also noticed an increase in investors, particularly from the northern and eastern suburbs, and the occasional interstate buyer.
Mr Tofaili said Werribee, Hoppers Crossing and Wyndham Vale were investment hot spots.