Rental market remains tough through January
Date: 19 Feb 20
MEDIA RELEASE
Wednesday, 19 February 2020
REIV President Leah Calnan said Victoria’s rental market remains tough following another month of low vacancy rates.
The latest rental data from the REIV Vacancy rates remained stable for both metro (2.2%) and regional (1.7%).
Median rents for Melbourne houses remained at $480 per week during January; however there was some relief for regional renters with the average rent for regional houses having decreased to $350 per week.
Median rents for regional units remained at $290 per week, while those units in the city increased to a weekly rent of $445.
REIV Vacancy Rates, 6-month Average Trend
Vacancy Rate = the proportion of unlet properties to the total rent roll (%).
| |
Jan |
Dec |
Nov |
Jan |
| MELBOURNE |
2020 |
2019 |
2019 |
2019 |
| INNER TOTAL |
1.9 |
1.9 |
1.9 |
2.1 |
| INNER (0-4KM) |
1.8 |
1.7 |
1.8 |
1.4 |
| INNER (4-10KM) |
2.1 |
2.1 |
2.1 |
2.3 |
| MIDDLE (10-20KM) |
3.4 |
3.3 |
3.2 |
3.3 |
| OUTER TOTAL |
1.9 |
1.9 |
1.9 |
1.5 |
| OUTER (20+KM EXC. MORNINGTON PENINSULA) |
1.8 |
1.8 |
1.7 |
1.5 |
| OUTER (MORNINGTON PENINSULA) |
3.7 |
3.4 |
3.5 |
1.8 |
| MELBOURNE TOTAL |
2.2 |
2.2 |
2.2 |
2.2 |
| |
|
|
|
|
| |
Jan |
Dec |
Nov |
Jan |
| REGIONAL |
2020 |
2019 |
2019 |
2019 |
| GEELONG & BARWON REGION |
2.2 |
2.2 |
2.2 |
1.8 |
| BENDIGO & LODDON |
1.0 |
1.1 |
1.2 |
1.0 |
| BALLARAT & CENTRAL HIGHLANDS |
2.1 |
2.0 |
1.8 |
0.7 |
| WIMMERA^ |
0.7 |
1.1 |
1.7 |
1.6 |
| SHEPPARTON & GOULBURN |
2.7 |
2.5 |
2.3 |
1.6 |
| EAST GIPPSLAND & WELLINGTON SHIRE |
0.9 |
0.9 |
0.8 |
1.2 |
| WARRNAMBOOL & WESTERN DISTRICT |
1.2 |
1.0 |
0.9 |
1.6 |
| MILDURA & MALLEE |
1.6 |
1.4 |
1.2 |
1.4 |
| WODONGA & OVENS-MURRAY |
1.5 |
1.7 |
1.8 |
1.3 |
| LATROBE VALLEY - SOUTH & WEST GIPPSLAND |
1.3 |
1.3 |
1.3 |
1.3 |
| REGIONAL VICTORIA TOTAL |
1.7 |
1.7 |
1.6 |
1.2 |
| |
|
|
|
|
| |
Jan |
Dec |
Nov |
Jan |
| STATE |
2020 |
2019 |
2019 |
2019 |
| VICTORIA TOTAL |
2.1 |
2.1 |
2.0 |
2.0 |
| |
|
|
|
|
| Median Weekly Rents, Monthly |
|
|
|
|
| |
Jan |
Dec |
Nov |
Jan |
| |
2020 |
2019 |
2019 |
2019 |
| HOUSE |
|
|
|
|
| INNER |
$670 |
$680 |
$650 |
$650 |
| MIDDLE |
$485 |
$485 |
$470 |
$460 |
| OUTER |
$400 |
$400 |
$410 |
$400 |
| METRO |
$480 |
$480 |
$475 |
$470 |
| GEELONG |
$400 |
$400 |
$400 |
$380 |
| BALLARAT |
$350 |
$350 |
$348 |
$338 |
| BENDIGO |
$330 |
$330 |
$330 |
$300 |
| REGIONAL VICTORIA |
$350 |
$360 |
$350 |
$330 |
| |
|
|
|
|
| UNITS/APTS |
|
|
|
|
| INNER |
$460 |
$455 |
$450 |
$450 |
| MIDDLE |
$445 |
$430 |
$430 |
$428 |
| OUTER |
$370 |
$380 |
$370 |
$360 |
| METRO |
$445 |
$440 |
$430 |
$430 |
| GEELONG |
$360 |
$370 |
$340 |
$330 |
| BALLARAT |
$250 |
$278 |
$280 |
$260 |
| BENDIGO |
$300 |
$290 |
$270 |
$260 |
| REGIONAL VICTORIA |
$290 |
$290 |
$280 |
$260 |
REIV President Leah Calnan said Victoria’s rental market was still in need of more rental properties.
“Rental homes remain very popular across Victoria, vacancy rates in Melbourne are at a very low 2.2 % for January.” Ms Calnan said.
“While regional Victoria with a vacancy rate of 1.7 % has a come a long way since having a rate of just 1.2 % last year, more improvement is drastically needed.”
“Healthy vacancy rates are usually around the 3% to 4% mark, having vacancy rates as low as 1.7% or 2% is not sustainable.”
“Our members are reporting that each new property is being flooded with rental applications, and are rented out in no time.”
“There is a strong demand for more rental properties, and sadly many families are still struggling to get a rental home.”
“With vacancy rates having stayed below 3% since March 2016 in Victoria
, more homes are badly needed.”
“Many landlords remain confused about the upcoming changes to the rental laws in introduced by the Victorian Government, with many being apprehensive about how the new regulations will impact them”.
“The Andrews Government needs to work more closely with landlords and the real estate sector to ensure more homes are available to rent.”
Media contact:
Andrew Kilmartin 0418395346