Are you in the market for a Melbourne rental property? It might seem like a difficult task, getting into the perfect home or apartment in the Victorian capital, but it can be done. You just have to be patient, and wait for the right place to become available.
However, there are some factors that prevent people from renting where they want, when they want, including price and location. What’s currently happening in the Melbourne property market, and why is it great news for potential tenants?
Good news for the state of the rental market in Melbourne
The current price of $418 per week for a house hasn’t put tenants off renting.
The median weekly rent for houses in metropolitan Melbourne has increased by $8 since September this year, according to the Real Estate Institute of Victoria. The current price of $418 per week for a house hasn’t put tenants off renting, however, as the vacancy rate remained steady at 2.5 per cent through both September and October.
This is a significant improvement on the February high of over 3 per cent. Living in the city is becoming more popular, so landlords should take note. The CoreLogic RP Data monthly indices to the end of October show that the median dwelling value in Melbourne is $849,830 – an increase of 9.13 per cent over the past year. This shows the potential for capital gains, though, and also why it’s important to act now, before the prices rise even further.
However, in regional Victoria, the vacancy rate has been steadily declining since the 2016 peak in June. It now sits at 2.6 per cent, although in April 2015 it was only 2.1 per cent. This shouldn’t put people off looking in the regions, however.
Why is a higher vacancy rate good for tenants?
While the vacancy rates around Victoria are still low, the fact that there are more available homes around the regions is good news for people looking to get into a rental now. There are more properties available than there were a year ago, although not as many as in June.
It’s the same in the cities – a vacancy rate of 2.5 per cent is great for prospective investors, but it also shows that there are plenty of options for people looking to rent immediately.
No matter if you’re looking for an inner-city apartment or a regional house to rent, the perfect property for your needs will be out there – you just have to keep looking.