Melbourne rents to skyrocket

A drop in rental vacancies in Melbourne to 25-year lows is likely to push rents though the roof, according to a new report by the Real Estate Institute of Victoria.

The number of rental vacancies in Melbourne fell from 1.6% in July to 1.2% in September. The decline was most pronounced in outer Melbourne, where vacancy levels fell from 1.7% in July to 0.9% September, but vacancies in the inner city also fell significantly, from 1.5% to 0.9% in September.

The situation is only marginally better in regional Victorian centres, with Ballarat seeing the biggest drop in vacancies from 4.3% in July to 2% in September.

Only Geelong and the surrounding region saw a slight 0.2% improvement in vacancy rates to 1.6%.

The ongoing very low levels of rental availability in Victoria are a serious concern, REIV chief executive Enzo Raimondo says.

“The continual low vacancy rate will result in more upward pressure on rents, further reducing affordability and access to accommodation,” Raimondo says.