What's happening in the rental market?

The vacancy rate in Melbourne’s Southeast traditionally declines in the warmer months. However, when reviewing various areas of the Melbourne market, we can see that the Southeast has now dipped below the vacancy rates seen in previous years and is currently showing similar vacancy rates to March 2017 (just 1.3%).

For some areas in Melbourne’s East, vacancy rates currently sit at 0.9%, well below historical levels. In regions surrounding tertiary institutions, we attribute this performance to new overseas policies prohibiting students from remote learning and making attendance compulsory in the country in which they are enrolled. This, combined with international borders now being open, has caused the increase in demand that led to a steep incline in rents in those localities.

We have also noted that these rental increases and market forces are predominantly at play within the inner and middle rings of Melbourne. For properties located in the greenfield areas, especially in new estates, the supply is still in line with the demand, so the vacancy rate has remained relatively stable at 1.6%.

LongView’s goal is always to secure the very best renter as we know that a well vetted and carefully chosen renter is the best investment for your property. So, while pushing the pricing of rentals among vacant properties and rental reviews among current tenancies to meet the market, we always ensure that our renter selection is never compromised.