The REIV has reported that vacancy rates are still tight in Victoria with the overall vacancy rate in Melbourne reported as 2 per cent in January 2011 last month, down from 2.3 per cent in December.
It is now exactly six years since the rate was above 3 per cent. The market was balanced in January 2005, when 3.3 per cent was recorded.
Currently, the area with the fewest vacancies in Melbourne is the outer suburbs, where the vacancy rate was 1.4 per cent. The inner suburbs — those within 10 kilometres of the CBD — recorded 1.9 per cent, with most vacancies found in the suburbs within four kilometres. The middle suburbs recorded a vacancy rate of 2.3 per cent, down from 3.1 per cent in December.
In regional Victoria, the vacancy rate remained lower than the metropolitan area at 1.3 per cent.
With such low vacancy rates, and little new construction of new dwellings, plus the fact that more tenants will remain on the rental round about, rents must rise throughout the year.
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