Victorian rental market stable in October

In October the rental market remained stable in Victoria in terms of the level of vacancies and rents charged.

The vacancy rate for Victoria was 1.9%, compared with 2% in September. In Melbourne the vacancy rate was also 1.9%, slightly lower than the 2% recorded in September. In regional Victoria it remained stable at 2%.

Within the metropolitan area inner Melbourne had the highest level of vacancies, with 2.6% recorded in those suburbs within four kilometres of the CBD. As you move further from the CBD the vacancy rate tightens, with 2% in the middle suburbs and 0.9% in the outer suburbs.

The median rent being asked in Melbourne was $370 per week for houses. This is lower than the $380 being asked in July and reflects an easing of conditions in the market.

In regional Victoria the tightest vacancy rate was found in Bendigo, where it was 0.7%, down from 0.9%. In Geelong the vacancy rate tightened from 3.5% to 2.8% and in Ballarat it eased from 1.3% to 1.5%.

Rents remained reasonably stable, with a weekly median rent of $300 per week for a house being recorded, compared with $295 in September.

For the first time the REIV is publishing a vacancy rate for the Mornington Peninsula. In October the vacancy rate was 1.6%, compared with 3.3% in September.

Enzo Raimondo is CEO of the Real Estate Institute of Victoria.