Here’s how the Melbourne rental market performed in 2014

Historically speaking, the performance of last year’s rental market in Melbourne was relatively moderate.

In the last three months of 2014 the median advertised rent for a house in Melbourne increased by a minor 0.3 per cent to $448 per week, the opposite to the -0.3 per drop in the unit market.

September’s result is reflective of the broader performance of the rental market over 2014 where low rental growth and low yields persisted.

Key facts

  • Median advertised rent for a house in Melbourne $448
  • Median rent for house rise 2.5 per cent in 2014, units 1.9 per cent
  • Melbourne yields lowest of all capital cities

More details:for_rent_1

Over the course of 2014 house rents increased by 2.5 per cent and units increased by 1.9 per cent.

For houses, 2014 was not dissimilar to the past five years.

On a annualised basis, rents rose by 2.5 per cent in 2013, 1.3 per cent in 2012, 2.7 per cent in 2011. The only year that recorded a substantially different result was 2010 when rents grew 5.5 per cent.

renters marketThe unit market recorded similar results.

In many respects the rental market is following the changes in value seen in the ownership market. With the exception of the unit market, the last two years were similar and 2010 saw boom-like conditions.

Similar to the ownership market, the biggest question for 2015 is whether the growth in supply in the unit segment will further moderate advertised rents.

Yields remained low.

For both units (4.2 per cent) and houses (3.3 per cent) the yield in Melbourne is the lowest of all capital cities. This does not seem to concern investors who are clearly focused on the longer term prospects for capital gains. 



Want more of this type of information?


Robert Larocca

About

Robert Larocca is RP Data's Victoria Housing Market Specialist. He has built a profile over the past eight years as an expert on the Victorian residential property market. Visit www.rpdata.com


'Here’s how the Melbourne rental market performed in 2014' have no comments

Be the first to comment this post!

Would you like to share your thoughts?

Your email address will not be published.
CAPTCHA Image

*

0
0

Michael's Daily Insights

Join Michael Yardney's inner circle of daily subscribers.

NOTE: this daily service is a different subscription to our weekly newsletter so...

REGISTER NOW

Subscribe!