Vacancy rates in Victoria remain low

Some good new for Melbourne property investors.

Not only are property prices surging, but rental prices continue to grow in Victoria following another month of low vacancy rates.

The monthly rental data from the REIV shows median rental house prices have shot up across Melbourne by $10, with units climbing also by $10 since October 2018, following a vacancy rate of 2.2% for Melbourne last month.

Vacancy Rate = the proportion of unlet properties to rent roll (%).

MELBOURNE Oct 2019 Sep 2019 Oct 2018
INNER TOTAL 1.9 1.9 2.1
INNER (0-4KM) 1.8 1.7 1.4
INNER (4-10KM) 2.1 2.1 2.3
MIDDLE (10-20KM) 3.0 3.1 2.6
OUTER TOTAL 1.8 1.8 1.5
OUTER (20+KM EXC. MORNINGTON PENINSULA) 1.6 1.7 1.5
OUTER (MORNINGTON PENINSULA) 4.0 3.3 2.5
MELBOURNE TOTAL 2.2 2.2 2.0
REGIONAL Oct 2019 Sep 2019 Oct 2018
GEELONG & BARWON REGION 2.0 2.0 2.0
BENDIGO & LODDON 1.4 1.1 0.9
BALLARAT & CENTRAL HIGHLANDS 1.7 1.7 0.8
REGIONAL VICTORIA TOTAL 1.6 1.6 1.3
STATE Oct 2019 Sep 2019 Oct 2018
VICTORIA TOTAL 2.0 2.0 1.9
Median Weekly Rents, Monthly
Oct 2019 Sep 2019 Oct 2018
HOUSE
INNER MELB $660 $630 $650
MIDDLE MELB $480 $470 $450
OUTER MELB $400 $400 $400
METRO $470 $460 $460
GEELONG $400 $400 $370
BALLARAT $333 $340 $320
BENDIGO $340 $323 $320
REGIONAL VICTORIA $350 $350 $330
UNITS/APTS
INNER MELB $450 $450 $450
MIDDLE MELB $428 $425 $420
OUTERMELB $375 $370 $350
METRO $430 $430 $420
GEELONG $340 $308 $300
BALLARAT $290 $275 $270
BENDIGO $280 $290 $270
REGIONAL VICTORIA $290 $280 $260

REIV President Leah Calnan said a lack of housing has led to renters paying a premium.

“There is an urgent need for more rental accommodation across Victoria.” Ms Calnan said.

“Healthy vacancy rates should be around 4%; most of the state is sitting at 1 or 2%,  increasing demand has led to rental price climbing.”

“With changes to the Residential Tenancy Act coming in next year; landlords remain confused and cautious about losing control over their investment.” Ms Calnan said

“Our members have reported to us that many homes have been sold or are being kept off the market, leading to a surge in housing demand.”

“With competition for housing at a high, many families are struggling to put a roof over their heads, which puts a lot of pressure on local welfare groups.”

“The State Government needs to do more to work with landlords and encourage them to rent out their investment homes.”

“New rental homes are being leased out in record time, therefore more owners should be encouraged to put their property on the rental market.”

“With rising rents and increased demand, now is a great time to rent out your investment property.”

Here’s how you can take advantage of this

As Metropole Property Management specialises in property management our vacancy rate is less than 1% (considerably below the market average), our tenants stay an average of 2 years and our properties lease 10 days faster than the market average.

Our stress free property management services help you maximise your property returns.

Click here to find out why our clients enjoy a vacancy rate considerably below the market average, our tenants stay an average of 3 years and our properties lease 10 days faster than the market average.

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Leanne Jopson

About

Leanne is National Director of Property Management at Metropole and a Property Professional in every sense of the word. With 20 years' experience in real estate, Leanne brings a wealth of knowledge and experience to maximise returns and minimise stress for their clients. Visit: Metropole Property Management


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