Rental Market in April 2013

In April 2013, the vacancy rate in Melbourne increased by 40 basis points from the previous month to 3.2 per cent. This fall was largely due to increases in the vacancy rates of the inner and outer suburbs from 2.9 to 3.6 percent and from 2.3 to 2.8 per cent respectively.

The vacancy rate for the middle suburbs decreased from 3.1 to 2.9 per cent in April 2013.

The vacancy rate for regional Victoria remained stable in April at 3.3 per cent after an increase in the previous month. Of the three main regional centres, both Geelong and Bendigo recorded an increase in the vacancy rate from four to 4.4 per cent and from 2.8 to 3.1 per cent respectively.  Ballarat recorded a decrease from 2.4 to 2.2 per cent in April 2013.

It should be noted that the break in the vacancy rate data series starting from January 2013 is due to a change in methodology arising from REIV’s improved sample size collection and calculation of median rents.

The easing of vacancy rates in Melbourne in April 2013 has translated to a reduction in the median rent for houses of 3.4 per cent to $382 per week while the median rent for units remained stable at $370 per week. It should be noted that the median rent is of homes on offer for rent in the respective month.

The vacancy rate in regional Victoria remained stables but recorded decreases in both the median house and unit rents. The median house rent decreased to $295 per week while the median unit decreased by 4.2 per cent to $230 per week.

*Article courtesy of Real Estate Institute of Victoria