Melbourne's vacancy rate falls to near decade low

Melbourne's vacancy rate falls to near decade low
Melbourne's vacancy rate falls to near decade low

Melbourne's vacancy rate fell to a 10 year low in February to 1.7 percent, according to SQM Research.

The latest data from SQM found Sydney's vacancy rate, fell to 1.9 percent, down from December's figure of 2.5 percent.

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Melbourne's vacancy rate falls to near decade low

 

Louis Christopher, managing director of SQM said the last time the vacancy rate was 1.7 percent in Melbourne was in June 2007, almost 10 years ago, so this is quite remarkable.

"Despite predictions of looming apartment oversupply in inner-city Melbourne, we are seeking vacancies fall, rather than rise," he said.

“Even in in the Docklands, the vacancy rate tumbled to just 2.4 percent last month, down from a high of 6 percent in December. 

"The rental market could tighten further in Melbourne as some apartment developments are scaled back, which would cut supply and could pressure rental growth higher in that city.

"Rents rose strongly in Melbourne over the month to March 20, up by 1.6 percent for houses to $512.30 a week, giving an annual change of 7.2 percent.

"Only Canberra reported a higher annual asking rent growth for houses at 7.6 percent, with weekly asking rents up to $578.80.

"Darwin continues to record falls in asking rents for houses, down 1.5 percent over the month, while unit rents were down 1.3 percent.

"Perth has again posted the largest yearly declines, with unit asking rents down 10.1 percent and house asking rents down 7.1 percent, though monthly declines were modest at 0.1 percent and 0.7 percent respectively.

"Brisbane unit asking rents were down by 0.5 percent over the month to March 20, and house asking rents were down by 0.4 percent.

“Unlike Melbourne or Sydney, Brisbane’s unit rental market is slightly oversupplied, which has kept down rental growth. 

"But in the other big cities, rental growth is strong, and well above the inflation rate and wages growth, suggest rentals are getting more and more unaffordable for the average person." 

Property Observer found a two bedroom apartment at 1607/8 McCrae Street, Docklands (above) for $600 per week.

The 16th floor unit has two bathrooms, two car spaces and use of apartment facilities such as swimming pool and barbeque. 

A three bedroom fully furnished apartment at 70 Lorimer Street Docklands is on the market for $1,500 per week. The property (below) features three bathrooms, two car spaces and views over Port Phillip Bay, Yarra River, Victoria Harbour and the CBD.

Melbourne's vacancy rate falls to near decade low

A two bedroom, two bathroom apartment with two car space on the market for $775 per week at 1401/480 St Kilda Road Melbourne (below).

Melbourne's vacancy rate falls to near decade low

The unit, on the top floor has views over Faulkner Park.

A two bedroom unit with two bathrooms and one car space at 1602/82 Queens Road Melbourne (below) is on the market for $565 per week.

Melbourne's vacancy rate falls to near decade low

The 16th floor apartment has views of the city, the bay and Albert Park.

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Melbourne Vacancy Rate

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