Tightened rental vacancy rates for Melbourne over October

Tightening-rental-vacancies-in-Melbourne-could-provide-potential-investors-with-lucrative-options--_16000816_800520690_0_0_14093556_300The vacancy rates in Melbourne have tightened over the last month, which could highlight a great opportunity to consider property investment in the Victorian capital city heading into the new year.

It has become increasingly difficult for renters to secure property across all the suburbs in the city, with the city’s overall vacancy rate falling to from 2.9 per cent in September to a low 2.7 per cent during October – reaching the lowest point of the year.

President of the Real Estate Institute of Victoria Enzo Raimondo said that while circumstances weren’t great for renters, it’s positive to see investors purchasing property and renting it out in an increasingly demanding market.

“Investors are increasingly active in the Melbourne housing market and the latest Australian Bureau of Statistics housing finance data showed a rise in the value of investment housing loans – up by 5.2 per cent, seasonally adjusted, in September,” said Mr Raimondo in a November 25 statement.

For example, the inner suburbs of Melbourne experienced a vacancy rate drop of 0.2 percentage points – falling from 3.1 per cent to 2.9 per cent – which was the second consecutive month of decreases after dropping from 4.7 per cent in August.

The vacancy rates were even tighter in the outer suburbs, dropping 0.6 percentage points over October to rest at 1.8 per cent after starting at 2.5 per cent in September. Furthermore, suburbs 20 kilometres outside of the city centre fell to the tight vacancy rate of 1.2 per cent.

This is amid a relatively strong property market overall, with the auction clearance results from last weekend (November 23) highlighting a clearance rate of 70 per cent for the city. This, coupled with a median home price of $700,000, supports the concept of property investors moving into the market.

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