June 2022 – Melbourne Rental Market

Cath Stubbings Co-Founder & Executive Director – LongView

The Melbourne Rental market has stabilised after the initial flurry of activity and tightening of conditions at the beginning of the year. Leasing volumes have returned to normal after peaking in March, and we are seeing a steady increase in properties coming on to the market which is resulting in vacancy rates returning to more expected levels.

 

 

Melbourne vacancy rate is currently 1.9% and remains the highest capital city behind Sydney 1.6%, Brisbane & Perth 0.7%, and Adelaide 0.4%. Interestingly there are many suburbs in Melbourne with much lower vacancy rates such as Cranbourne and Pakenham. In those areas we are seeing very low stock levels, competitive open for inspections and vacancy of only 0.4%.

 

This is consistent with the trend for renters to move further away from CBD areas and seek more land and space, probably as a result of the pandemic and the working from home phenomenon.

 

On the other hand, inner Melbourne suburbs such as St Kilda (2.6%) Prahran (2.1%) Melbourne CBD (2.9%) and Hawthorn (2.9%) are all experiencing higher than the Melbourne wide rate and we are seeing this have some impact on rental pricing and renter supply in those areas. Our property management team are keeping very close to each individual suburbs vacancy rate and providing informed advice to you about whether we can increase the rent, or market the property, at a higher price than during COVID-19.

 

The good news is that in most case we are seeing growth in rental prices across the board, despite the few anomalies.

 

Watch Megan Taylor give highlights about the Melbourne Rental Market

 

Talk to our property management team rated #1 in Melbourne for speed of letting (Source: Propic 2020) – minimizing vacancy periods and protecting landlord cashflow. Read more here.