This article is from the Australian Property Journal archive
VICTORIA’S rental market remains tough following another month of low vacancy rates, according to the REIV.
Rental data from the body shows vacancy rates remained stable for both metro (2.2%) and regional (1.7%) regions.
Median rents for Melbourne houses remained at $480 per week during January, although there was some relief for regional renters with average rents easing to $350 per week. Regional units remained at $290 per week, while those units in the city increased to a weekly rent of $445.
REIV president, Leah Calnan said Victoria’s rental market was still in need of more rental properties, as rental homes remain very popular across Victoria, as vacancy rates in Melbourne remain very low.
“There is a strong demand for more rental properties, and sadly many families are still struggling to get a rental home.
“With vacancy rates having stayed below 3% since March 2016 in Victoria, more homes are badly needed.”
Inner Melbourne vacancies remained at 1.9% in January, down from 2.1% 12 months earlier. House rents are at $670 per week, $20 per week higher year-on-year, and unit rents have lifted slightly to $460.
The middle suburbs saw a small vacancies increase to 3.4% as rents, as house held firm at $485 per week, but are $25 dearer over 12 months. Unit rents are up to $445.
Beyond 20 kilometres from the city, vacancies are at 1.8%, but when the Mornington Peninsula is included in this bracket the rate more than doubled to 3.7%. Rents have remained at around $400 per week for houses and $370 per week for units.
“Healthy vacancy rates are usually around the 3% to 4% mark,” Calnan said. “Having vacancy rates as low as 1.7% or 2% is not sustainable.”
“Our members are reporting that each new property is being flooded with rental applications, and are rented out in no time.”
She said regional Victoria had come a long way since having a rate of just 1.2% last year, now sitting at 1.7%, but more improvement is drastically needed.
Geelong and the Barwon region was steady at 2.2%, up from 1.8% in January last year. Rents have increased slightly over 12 months to $400 per week for houses, while units have grown $30 to $360 per week in that time.
Bendigo and Loddon vacancies have remained in the 1.0% vicinity, and rents have grown to $330 for houses and $300 for units, while vacancy rates in Ballarat and central highlands continued to increase, up to 2.1% after sitting at 0.7% last year. Rental movement has been more modest, up $12 to $350 over 12 months for houses, and have eased to $250 for units.
