A slight easing has hit the Victorian rental market as vacancy rates see some improvement.
According to the latest monthly rental data from the Real Estate Institute of Victoria (REIV), rental prices have fallen in metropolitan Melbourne following a month of some improvement in vacancy rates across the state.
“The monthly rental data from the REIV shows median rents for houses are now more affordable at $470 per week, down from February’s $480 per week, but still higher than the same time last year,” it said.
“Metropolitan units are also now cheaper to rent, from $450 per week in February down to $430 per week.”
The regional Victorian vacancy rate climbed from 1.8 per cent to 1.9 per cent over the month, however median house rents remain unchanged on $350 per week, with units rising to $295 per week, REIV added.
“In Geelong, house rental prices shrunk by $10 to $400 per week, the Ballarat region remained steady on $340 per week, while house rents increased in the Bendigo region by $7 to sit at $350 per week,” it said.
“Although there has been some improvement in vacancy rates with metropolitan Melbourne recording 2.3 per cent for two consecutive months, Victoria needs vacancy rates of 3 per cent [to] 4 per cent to maintain a healthy market.”
Commenting further on the figures, REIV president Leah Calnan said Victoria’s temporary measures in place due to COVID-19 make it “challenging to gauge the real situation but the underlying strength of the Victorian property market is undeniable”.
“Victoria’s rental accommodation supply is growing, more rental homes are now available but there remains a need for more properties to be listed to cater for growing demand,” she said.
“The state government needs to work more closely with property owners, to help build a reliable supply of rental accommodation in Victoria.”