The vacancy rate for Melbourne decreased in September 2013 after an increase in the previous month. Rentals remained stable for houses but recorded a slight decrease for units.
Melbourne’s vacancy rate decreased from 3.7 per cent in August to 2.9 per cent in September marking the first time it has fallen below three per cent since May. While there are monthly fluctuations, this month’s vacancy is below the average for the year which would be encouraging for investors. The decrease in vacancy was mainly due to a reduction in vacant properties in the inner and middle suburbs. There was an increase in vacancy for the outer suburbs.
The vacancy rate for the inner suburbs decreased from 4.7 per cent to 3.1 per cent, reversing three consecutive months of increase. REIV CEO Enzo Raimondo said that despite this reduction, the inner suburbs continued to have the highest vacancy rate in the metropolitan region.
“There are still a relatively high number of vacant properties in the central core suburbs within 4kms from the CBD. While the overall vacancy rate has improved, the average house rent in the inner suburbs fell by 3.8 per cent this month,” Mr Raimondo said.
The vacancy rate for the middle suburbs also recorded a decrease from 3.2 to three per cent. The outer suburbs recorded an increase in vacancy from 1.9 per cent to 2.5 per cent and remain the tightest rental market in the metropolitan region.
The weekly house rent in Melbourne remained stable at $390 in September while the weekly rent for units decreased slightly from $380 to $375. The vacancy rate in regional Victoria also decreased this month. It fell from three per cent to 2.7 per cent marking the fourth consecutive month of decreases. The tightening in vacancy has also seen increases in the median weekly rents from $290 to $300 for houses and $240 to $250 for units.