From the REIV CEO: Rental prices fall

Rental prices have fallen in metropolitan Melbourne following a month of some improvement in vacancy rates across the state.

The monthly rental data from the REIV shows median rents for houses are now more affordable at $470 per week, down from February’s $480 per week, but still higher than the same time last year.
Metropolitan units are also now cheaper to rent, from $450 per week in February down to $430 per week.
The Regional Victorian vacancy rate climbed from 1.8 per cent to 1.9 per cent over the month, however median house rents remain unchanged on $350 per week, with units rising to $295 per week.
In Geelong, house rental prices shrunk by $10 to $400 per week, the Ballarat region remained steady on $340 per week, while house rents increased in the Bendigo region by $7 to sit at $350 per week.
Although there has been some improvement in vacancy rates with metropolitan Melbourne recording 2.3 per cent for two consecutive months, Victoria needs vacancy rates of 3-4 per cent to maintain a healthy market.
The numbers released today reflect the strong market in the lead up to the state of emergency, and are consistent with our March quarter median prices.
The temporary measures in place due to COVID-19 make it challenging to gauge the real situation but the underlying strength of the Victorian property market is undeniable.
Victoria’s rental accommodation supply is growing, more and rental homes are now available, but there remains a huge need for more properties to be listed to cater for growing demand.
Lower vacancy rates mean that families are finding it more tougher and tougher to put a roof over their heads.
I urge owners of investment homes to lease out their properties, they will get a great rental retrurn, and homes are being leased out rapidly, with no hassle.
The state government still needs to work more closlely with property owners, toand help encourage them to rent themir investment homes out and to help ease the statewide housing shortage.
As always, if a buyer or a seller is looking for objective information on the market or an agency, they should head to reiv.com.au.