Melbourne's vacancy rate tightens to 2.3%

Melbourne’s rental vacancy stands at 2.3% of rental homes managed by real estate agents, representing a small contraction since the 2.5% of July.

The vacancy rate has averaged 2% over the past six months, according to the survey of Real Estate Institute member agencies.

The last time the overall Melbourne market was in balance – a vacancy rate of 3% or higher – was back in January 2005.

Within Melbourne the greatest vacancies are in the outer suburbs, although the rate contracted from 3.2% in July to 2.9% in August.

The middle suburbs' vacancy rate was 2.4%, tighter than the 2.6% in July.

Melbourne’s inner suburbs’ vacancy rate contracted from 2.2% to 1.7%.

Real Estate Institute of Victoria chief executive Enzo Raimondo notes the vacancy rate remains lower in regional Victoria than in the capital, with 1.9% of rental homes vacant in regional Victoria, an increase from the tight 1.6% in July.

It was the highest for more than a year in the regions.

The Geelong region has the highest availability of the main regional centres, with 3.7% compared with 2.1% in July.

In Ballarat the rate tightened from 0.8% to 0.6%.

In Bendigo the rate eased slightly from 0.3% to 0.4%.

Warrnambool’s vacancy rate went from 3.3% to 4.6%, REIV figures show.