There’s been quite a bit of discussion over the past week or so about the Victorian rental market. You may have seen terms like rental squeez’ and even ‘rental crisis’ being used in the media. So we thought it might be a good opportunity to look at the numbers behind the headlines.
The latest rental market data from the Domain Rental Vacancy Report for February indicates that the supply of vacant rental properties across Melbourne has more than halved over the past year as we emerge from the restrictions imposed by the pandemic.
The Domain report says that Melbourne’s rental vacancy rate fell from 4.4 per cent at this time last year to just 2.1 per cent in February. Mind you, Victoria is not alone in this rental squeeze as vacancy rates have been falling in most capital cities around the nation.
As we pointed out in A POST BACK IN JANUARY, numbers like these are likely to inspire an increasing number of Victorians to consider becoming a property investor for the first time, or to increase their portfolio if they’ve already become a landlord.
However, no matter which category you may fit into, it is important to remember that being a successful property investor is all about picking the right property in the right area, and paying the right price.
A look behind the headline numbers in the Domain report shows that there are large variations between the vacancy rates in different parts of the state. For example, some of the tightest rental markets are those on the fringes of town, such as the Mornington Peninsula and Yarra Ranges, which both recorded vacancy rates of 0.5 per cent or less in February.
Whatever the reasons, there is no doubt that a shortage of available rental stock and increased competition between renters can only push average rents one way…upward. That’s not great news if you’re currently renting and trying to save for your first home, but good news if you want to own a rental property or two.
With this in mind, we would invite anyone who is looking at taking the first steps towards becoming a property investor to give us a call at Ian Reid Buyer and Vendor Advocates to have a confidential chat about the best ways our team can assist you. You can get us on 9430 0000.