August Rental Update

After a reduction in the previous month, the vacancy rate for Melbourne increased in August 2013. The rental market is varied with increases observed in the inner and middle suburbs while the outer suburbs remain tight at below two per cent.

Melbourne’s vacancy rate increased from 3.2 per cent in July to 3.7 per cent in August 2013, the highest level for the year. The increase in vacancy this month was mainly due to a large increase in the number of vacant properties in the inner suburbs.

The inner city vacancy rate increased from 3.7 per cent to 4.7 per cent. However this was due to an increase in suburbs 4-10kms from the CBD. The vacancy rate for the central core suburbs less than 4kms from the CBD fell for the fourth consecutive month to 2.9 per cent.

The vacancy rate for the middle suburbs increased from three per cent to 3.2 per cent. The vacancy rate for the outer suburbs was stable at 1.9 per cent and remains the tightest rental market in Melbourne. The weekly house rent in Melbourne increased from $380 to $390. The weekly rent for units remained stable at $380.

The largest increase in the rent for houses this month was in the tightest market – the outer suburbs. The weekly rent here increased from $340 to $350. The outer suburbs also had the largest increase in rental growth for units with the weekly rent increasing from $305 to $320.

The vacancy rate for regional Victoria fell from 3.4 per cent in July to three per cent in August. There were decreases in the key regional centres of Geelong and Ballarat while Bendigo increased. Consequently, there were rental increases for both Geelong and Ballarat while Bendigo decreased.

Source: http://www.reiv.com.au