The REIV’s Residential Vacancy Rates for April shows an improvement in the availability of rental homes in Melbourne’s outer suburbs.
REIV CEO Enzo Raimondo said that over the last six months the vacancy rate in the outer suburbs has improved from 0.7 per cent to 1.8 per cent.
“The vacancy rate across Melbourne is reasonably consistent having been between 1 and 1.4 per cent for 12 months however it is significant that we have recorded an improvement in the outer suburbs.
“The improvement may be due to the number of first home buyers that are moving from rented accommodation to their own home with the assistance of the grants, bonus and boosts.
“The REIV March quarter median prices showed that most of the activity in the marketplace has been in the outer suburbs; for instance Craigieburn, Melton South, Hillside, Epping, Caroline Springs, Werribee and Meadow Heights – all outer suburbs of Melbourne popular with first home buyers.
“It is great news for renters if a by-product of the grants, bonus and boosts is an improvement in the availability of rental accommodation, however we will need to monitor the situation over the next few months to see if it continues to improve.
“We would consider that the rental market would be in balance once we reach a Melbourne wide vacancy rate of 3 per cent.
“In the last month the figures from our members have shown a very minor change in the inner suburbs where the vacancy rate moved from 1.5 to 1.3 per cent and in the middle suburbs where it moved from 1.4 to 1.3 per cent” Mr Raimondo concluded.