This article is from the Australian Property Journal archive
Demand for Melbourne’s residential property rentals shows no signs of abating, according to the latest Real Estate Institute of Victoria, vacancy rates fell to 2.1% in the December quarter, down from 2.2% in September 2005.
REIV’s chief executive officer Enzo Raimondo said demand for rentals is at its highest level for five years.
He added that agents are reporting a vast majority of properties being let within two weeks of listing.
The newly completed and previously untenanted inner-city apartment market, which includes CBD, Docklands, St Kilda Rd and South Bank, remained at 3.4%.
The residential vacancy rate for inner Melbourne (0-4km from the CBD) fell from 2.5% to 2.3%.
Meanwhile, the vacancy rate for inner Melbourne (4-10km from the CBD) rose from 1.8% to 2.2%.
In middle Melbourne (10-20km from the CBD) the vacancy rate fell from 2.7% to 1.9% and in outer Melbourne (20km plus from the CBD) the vacancy rate remained at 2.0%.
“The downward trend in vacancy rates over the past 12 months is good news for investors and lays a foundation for an increase in investor demand in the current market conditions,
“In the inner areas of Melbourne, demand is being met by available property and there is a balanced market,” Raimondo said.
He added at that the current conditions are putting upward pressure on rents, which is likely to continue for the foreseeable future.
The vacancy rate for regional Victoria increased to 2.7%, up from 2.4% in September quarter.
Geelong’s vacancy rose to 3.0%, Bendigo’s rose slightly to 2.2%, and Ballarat’s vacancy rate rose slightly to 2.4%.
Vacancy rates for other Victorian regions consistently remain low for the December quarter, with Wodonga (1.2%), Shepparton/Goulburn (1.8%), East Gippsland/Wellington Shire (5.0%), Warnambool/Western District (1.4%), Latrobe Valley/South and West Gippsland (5.7%), and Mildura/Mallee (3.8%).
“Although there have some increases in vacancy rates in the larger regional centers, rental market indicators for regional Victoria remain very low which is likely to put upward pressure on rents,” Raimondo concluded.
By Kathryn O’Meara
