Mentone Suburbs Where Buying is Now Cheaper Than Renting

Homebuyers in Mentone are now discovering that monthly mortgage payments have fallen below typical rents in several suburbs for the first time since 2018, according to new data from Metro Realty Analytics. Regatta Hill and Harrington Place lead the list of local neighbourhoods where purchasing a home beats renting on affordability, marking a major shift for the city’s fast-moving property market.

Affordability is front-of-mind this winter as rental prices reach record highs across Mentone. Many tenants renewing their leases in June have reported sharp increases-some facing hikes of over 12 percent on last year’s contracts-in the wake of a tight rental supply and persistent demand from newcomers and up-sizers alike. For those able to secure finance, the calculation is changing: entry-level buyers now find that monthly repayments on owner-occupier loans are, in some pockets, less than what landlords are currently charging for similar properties.

Regatta Hill and Harrington Place Turn Tides

The local turnaround is clearest in Regatta Hill, located just north of Mentone Central. According to last month’s figures from Seaside Lending Cooperative, the median rent for a two-bedroom townhouse on Humboldt Avenue is now $2,150 per month, while typical loan repayments for recent sales in the same complex land between $1,890 and $2,050, assuming a 15% deposit and current fixed-term rates. In Harrington Place, south of Eastwood Reserve, a similar spread has emerged, with strata unit buyers on Henderson Street reporting mortgage outlays as much as $220 less per month than asking rents for comparable addresses.

The Mentone Council’s latest quarterly housing bulletin attributes the shift partly to a rise in private investor activity, which has led to tighter rental stock despite a moderate increase in total listings. At the same time, first-home buyer grants-such as the CityStart Bond from Mentone Community Finance launched in May 2025-are compressing up-front costs, making entry to the market more achievable for households with smaller deposits.

Sharp Numbers, New Strategies

Market-watchers say the numbers tell a stark story. Across the city, Metro Realty Analytics reported that in May 2026, the median monthly rent for all dwellings hit $2,075-a 9.4% annual increase. By contrast, the median monthly mortgage repayment for newly settled owner-occupier loans stood at $1,940 for strata units priced under $475,000, assuming prevailing 30-year terms. That gap is widest in Regatta Hill and Harrington Place, but smaller differences have also been recorded in pockets of Riverside Glen and at the southern end of Jubilee Park.

Prospective buyers considering a switch out of the rental market are being urged by local agents to check qualification for council or state-backed downpayment assistance, as these programs may tip the balance further in favour of purchasing. However, property advisers are quick to remind that not every suburb or dwelling type fits the trend. Demand for large, detached homes in areas like Bellmere Point and Highgate View still far outstrips supply, keeping buy-in costs well above equivalent rents for now.

With the Mentone property market entering a period of greater price diversity, the coming months could see more first-time buyers step off the sidelines in target suburbs. For those looking to make the leap, open homes scheduled this month on Humboldt Avenue and Henderson Street are expected to be well attended, with several local lenders rolling out consultations for on-the-spot pre-approval. Would-be homeowners are being advised to crunch the latest numbers and secure clarity on loan terms as discounts and grants continue to shift the affordability equation.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.