Rents hold steady as vacancy rates relax in Melbourne

Rental homes are now more accessible in Melbourne as vacancy rates relaxed slightly in June, while the rental market tightened further in Regional Victoria.

The REIV recorded a healthy 3.0 per cent vacancy rate in Melbourne while Regional Victoria recorded a further tightening of the rental market with 1.8 per cent.

The slight increase in vacancy rate did not impact the median rents with Melbourne median rental prices for houses now at $473 per week, $13 more than the previous month.

Median rents for Metropolitan units have also increased, from $410 per week in May to $420 per week for June.

Rental prices in regional Victoria are holding firm, with median house rents remaining unchanged on $350 per week for the past six consecutive months, regional units are sitting at $300 per week, a $5 increase on May.

The relaxation of vacancy rates could be largely attributed to inner city areas as smaller properties move from short term rentals like Airbnb. Fall in visitors, international students has meant that more property owners are returning to the traditional rental market.

REIV President Leah Calnan Melbourne’s rental market continues to grow.

“Melbourne’s rental market is holding firm in the face of the Coronavirus pandemic creating unique conditions.” Ms Calnan said.

“The relaxing of vacancy rates means there are more homes available for people to rent, and there has never been a more important time to have a roof over your head.”

“This rental data, combined with the annual growth shown in the June Quarterly Medians, demonstrates the strength and resilience of the Victorian property market.”

Source: REIV