Over the past 12 months, the number of vacant homes available for renting in Victoria has barely changed and there are no signs that it will improve in the next 12 months
At the end of November last year the vacancy rate for Victoria was 1.6 per cent, slightly higher than November 2009, when it was 1.3 per cent. Over the course of the year the rate varied between 1.2 and 1.6 per cent.
In Melbourne, 1.7 per cent of rental homes were vacant compared to 1.5 per cent a year ago. The REIV considers that the market is in balance (when renters can easily find a home to rent and investors are able to secure a reasonable return) when the vacancy rate is at three per cent – a percentage rate not seen since January, 2005
Within the metropolitan area, vacant rental homes were most scarce in the inner suburbs, where the vacancy rate was 1.3 per cent and in the outer suburbs, where it was 1.1 per cent. While it is higher in the middle suburbs – 1.9 per cent – it makes practically no difference when looking for a rental home.
In regional Victoria the availability of rental homes is lower than in the city, which has been the case since the middle of 2009. In November last year the vacancy rate in regional Victoria was 1.3 per cent, slightly better than the 0.8 per cent recorded in November 2009.
Of the three larger regional communities, the vacancy rate remained very low in Bendigo, where it was 0.6 per cent. In Geelong it was 1.6 per cent and in Ballarat, two per cent. Ballarat has had the most significant improvement: 12 months ago the vacancy rate was 0.7 per cent – whether this is the start of a real improvement will not be clear for a few months.
Posted by Warwick Brookes from Domain Property Advocates
Buyer Advocates, Vendor Advocates, Property Managers
