Rental Market Snapshot: The Melbourne property market has seen a huge decrease in vacancy rates since the Reserve Bank of Australia (RBA) increased interest rates for three consecutive months. There are economical opinions that there may be some more movement in interest rates as we approach the end of 2022.
This has influenced vacancy rates to decrease significantly however Rental yields have remained steady. The increased interests rates may see a follow on effect with increasing rent. As rental demand continues to increase, the vacancy rate figures are expected to drop further over time.
Regional Victoria continues to demonstrate better vacancy rates, but they have increased sharply over the last 3 months in comparison to metropolitan Melbourne that is decreasing at an incredibly fast rate.
According to the The Real Estate Institute of Victoria (REIV) :-
- The proportion of vacant properties in metro Melbourne stands at approx. 4.0% as at 30 June 2022. This has significantly decreased increased from 5.1% in the previous quarter ending March 2022.
- The proportion of vacant properties in regional Victoria stands at approx. 1.8% as at March 2022, compared to 1.1% from the previous quarter ending March 2022.
- The weekly median rent for houses in metropolitan Melbourne increased to approx. $500.
- The weekly median rent for houses in regional Victoria also increased to approx. $420.
Disclaimer – The REIV is the most authoritative source for information about the Victorian rental market with historical vacancy rates from October 2002. The REIV, on a monthly basis, collect current vacancy rates and rental data from Members and view.com.au leases.
