Melbourne’s rental market is showing signs of easing, with vacancy rates for all metropolitan areas rising above 2% for the first time in six years according to the latest figures from the REIV.
And vacancies are going to rise in the CBD where an apartment boom in the city has helped boost the CBD vacancy rate to 2.5% currently, but this will only increase as many new projects come on stream .
A year ago the vacancy rate was under 1% and renters competing for the few properties on the market pushing up rents.
The latest Real Estate Institute of Victoria figures show that suburbs within a 10-kilometre radius of the city had a vacancy rate of 2.4%.
There was more pressure on renters in middle and outer suburbs, which had a slighter lower vacancy rate of 2.1%.
”It’s still well below the three per cent needed for a balanced market but renters will hope it continues,” REIV spokesman Robert Larocca said.
At Metropole we’re finding the usual winter slowdown in tenant enquiries plus the slightly increased number of properties available for rent means property investors must charge market rents otherwise their properties can sit vacant for a few weeks. Having said that our overall vacancy rate is in under 2% at present.
Subscribe & don’t miss a single episode of Michael Yardney’s podcast
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
Need help listening to Michael Yardney’s podcast from your phone or tablet?
We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.
Prefer to subscribe via email?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.