Rental vacancy rates in Melbourne drop during November

By the resi financial blog team, 17 December 2013

Vacancy rates drop in Melbourne

Vacancy rates in Victoria's capital have remained relatively low heading into the Christmas period, which could be great news for anyone considering taking out an investment loan for property in Melbourne.

The latest data from the Real Estate Institute of Victoria (REIV) has indicated the vacancy rate grew by just 0.2 percentage points during November, returning to the September level of 2.9 per cent.

However, these are far below the rates seen earlier this year, which began at a high 3.6 per cent.

November saw the vacancy rate for residential properties in Melbourne's outer suburbs drop from 1.8 per cent down to a low 1 per cent, while the inner suburbs experienced a smaller decrease - falling from 2.9 per cent down to 2.8 per cent.

However, the middle suburbs of Melbourne experienced a growth after falling back in October. During November, the vacancy rate increased from 2.7 per cent up to 3.4 per cent - great news for any potential tenants interested in renting during the festive season.

REIV Chief Executive Officer Enzo Raimondo said the November results could be great news for landlords - both current and future.

"Property investors can also take heart at the latest rental news with Melbourne median rents up for both houses and apartments in November," Mr Raimondo said in a December 16 statement.

"The citywide median house rent in November rose by $3 to $393, the first increase since August, with the median having been stuck on $390 since then."

However, the largest median rental growth was seen in the city's inner suburbs, which grew from $521 in October to a huge $540 over November.

This could be encouraging for anyone considering purchasing investment property in the Victorian capital, inspiring confidence that there will be a decent rental yield on property bought in the region.

Categories: Home Loans, Property Investment