REIV: Rental vacancy rates decline

Rental vacancy rates across regional Victoria steadily declined over the year ending June 30, falling from 2.5 per cent to 1.6 per cent, with rentals outside Melbourne more difficult to secure than in the capital, where occupancy rates continue to match increased supplies of rental stock.

Most understand the balance between supply and demand will influence prices. Recent REIV research shows that a shortage of ready available properties for lease, weekly rentals across regional Victoria have generally risen.

These rises have not been without variation or exception. In Greater Bendigo, vacancy rates have tightened from 1.8 to 1.4 per cent. Median rental price for a four-bedroom home has jumped 5.1 per cent to $360 a week; three-bedroom houses are fetching a median $300 a week, an increase of 3.4 per cent over the 12 months. However, there has been no rise at all in the weekly median price of $250 for a two-bedroom house.

In Moyne Shire, which includes Port Fairy, Koroit and Warrnambool, the very opposite is true – four-bedroom medians are the same as a year ago ($400), while the three-bedroom median has risen 13.3 per cent to $340. And two-bedroom houses? The median rise there was a massive 26.8 per cent to $260. Across the Shire, vacancy rates have tumbled from 3 to 2 per cent.

Latrobe vacancies have tightened from 3.2 to 1.8 per cent, but again, median rental rises have been patchy – two-bedroom homes are up 2.2 per cent to $225 per week. Three-bedroom houses are still at the June 2017 level of $225, and four-bedroom houses have fallen to $325, a drop of 4.4 per cent over the year.

Mildura house rental medians rose across the board as vacancy rates fell from 3.8 to 2.7 per cent and indicate a larger return for landlords than there were a year ago. The medians rose 3.2 per cent to $240 for two-bedroom houses, 3.4 per cent to $300 for three-bedroom houses, and 6.3 per cent to $340 for four-bedroom houses.

A two-bedroom house in the Northern Grampians will cost a tenant paying the median just $190 a week. But that is an increase of 18.8 per cent over the past year. Maybe someone has found gold out there!