Slight easing of the rental squeeze as Victorian vacancy rates improve

Date: 5 May 20

MEDIA RELEASE
Tuesday, 5 May 2020

Rental prices have fallen in Metropolitan Melbourne following a month of some improvement in vacancy rates across the State.

The monthly rental data from the REIV shows median rents for houses are now more affordable at $470 per week, down from February’s $480 per week, but still higher than the same time last year. 

Metropolitan units are also now cheaper to rent, from $450 per week in February down to $430 per week.

The Regional Victorian vacancy rate climbed from 1.8% to 1.9% over the month, however, median house rents remain unchanged on $350 per week, with units rising to $295 per week.

In Geelong, house rental prices shrunk by $10 to $400 per week, the Ballarat region remained steady at $340 per week, while house rents increased in the Bendigo region by $7 to sit at $350 per week.

Although there has been some improvement in vacancy rates with Metropolitan Melbourne recording 2.3% for two consecutive months, Victoria needs vacancy rates of 3%-4% to maintain a healthy market.

The numbers released today reflect the strong market in the lead up to the State of Emergency, and are consistent with our March quarter median prices. 

REIV President Leah Calnan said that the temporary measures in place due to COVID-19 make it challenging to gauge the real situation but the underlying strength of the Victorian property market is undeniable. 

“Victoria’s rental accommodation supply is growing, more rental homes are now available but there remains a huge need for more properties to be listed to cater to growing demand.” Ms Calnan said.

“Lower vacancy rates, means that families are finding it tougher and tougher to put a roof over their heads.”

“I urge owners of investment homes to lease out their properties, they will get a great rental return, and homes are being leased out rapidly, with no hassle.”

“The State Government still needs to work more closely with property owners, to help encourage them to rent their investment homes out and to help ease the statewide housing shortage.”

Media contact: 
Andrew Kilmartin 0418395346