No ease for Victorian renters as vacancy rates stay low
Date: 29 Nov 19
MEDIA RELEASE
Friday 29th November 2019
Rental prices continue to grow in Victoria following another month of low vacancy rates.
The monthly rental data from the REIV shows median rental house prices have shot up across Melbourne by $10, with units climbing also by $10 since October 2018, following a vacancy rate of 2.2% for Melbourne last month.
Vacancy Rate = the proportion of unlet properties to rent roll (%).
| MELBOURNE |
Oct 2019 |
Sep 2019 |
Oct 2018 |
| INNER TOTAL |
1.9 |
1.9 |
2.1 |
| INNER (0-4KM) |
1.8 |
1.7 |
1.4 |
| INNER (4-10KM) |
2.1 |
2.1 |
2.3 |
| MIDDLE (10-20KM) |
3.0 |
3.1 |
2.6 |
| OUTER TOTAL |
1.8 |
1.8 |
1.5 |
| OUTER (20+KM EXC. MORNINGTON PENINSULA) |
1.6 |
1.7 |
1.5 |
| OUTER (MORNINGTON PENINSULA) |
4.0 |
3.3 |
2.5 |
| MELBOURNE TOTAL |
2.2 |
2.2 |
2.0 |
| |
|
|
|
| REGIONAL |
Oct 2019 |
Sep 2019 |
Oct 2018 |
| GEELONG & BARWON REGION |
2.0 |
2.0 |
2.0 |
| BENDIGO & LODDON |
1.4 |
1.1 |
0.9 |
| BALLARAT & CENTRAL HIGHLANDS |
1.7 |
1.7 |
0.8 |
| REGIONAL VICTORIA TOTAL |
1.6 |
1.6 |
1.3 |
| |
|
|
|
| STATE |
Oct 2019 |
Sep 2019 |
Oct 2018 |
| VICTORIA TOTAL |
2.0 |
2.0 |
1.9 |
| |
|
|
|
| Median Weekly Rents, Monthly |
|
|
|
| |
Oct 2019 |
Sep 2019 |
Oct 2018 |
| HOUSE |
|
|
|
| INNER MELB |
$660 |
$630 |
$650 |
| MIDDLE MELB |
$480 |
$470 |
$450 |
| OUTER MELB |
$400 |
$400 |
$400 |
| METRO |
$470 |
$460 |
$460 |
| GEELONG |
$400 |
$400 |
$370 |
| BALLARAT |
$333 |
$340 |
$320 |
| BENDIGO |
$340 |
$323 |
$320 |
| REGIONAL VICTORIA |
$350 |
$350 |
$330 |
| |
|
|
|
| UNITS/APTS |
|
|
|
| INNER MELB |
$450 |
$450 |
$450 |
| MIDDLE MELB |
$428 |
$425 |
$420 |
| OUTERMELB |
$375 |
$370 |
$350 |
| METRO |
$430 |
$430 |
$420 |
| GEELONG |
$340 |
$308 |
$300 |
| BALLARAT |
$290 |
$275 |
$270 |
| BENDIGO |
$280 |
$290 |
$270 |
| REGIONAL VICTORIA |
$290 |
$280 |
$260 |
REIV President Leah Calnan said a lack of housing has led to renters paying a premium.
“There is an urgent need for more rental accommodation across Victoria.” Ms Calnan said.
“Healthy vacancy rates should be around 4%; most of the state is sitting at 1 or 2%, increasing demand has led to rental price climbing.”
“With changes to the Residential Tenancy Act coming in next year; landlords remain confused and cautious about losing control over their investment.” Ms Calnan said
“Our members have reported to us that many homes have been sold or are being kept off the market, leading to a surge in housing demand.”
“With competition for housing at a high, many families are struggling to put a roof over their heads, which puts a lot of pressure on local welfare groups.”
“The State Government needs to do more to work with landlords and encourage them to rent out their investment homes.”
“New rental homes are being leased out in record time, therefore more owners should be encouraged to put their property on the rental market.”
“With rising rents and increased demand, now is a great time to rent out your investment property.”
Media contact: Andrew Kilmartin – 0418 395 346