rising rent in melbourne

Rising rent opens the door for new investors

The latest data on the Melbourne rental market has confirmed that rental returns have begun to shake off the effects of two years of pandemic, with residential rents beginning to rise.

The release of the Domain Rental Report for December 2021 shows that rental returns on houses in Melbourne hit record highs in the final quarter of last year. The figures show that the median rent on Melbourne houses increased by 3.5 per cent, or $15 per week, over the December quarter.

The new median of $445 per week exceeded the previous record of $440 which was set in the December quarter of 2018. This indicates that the rental market in our state capital is now in a state of recovery after the impact of six Covid lockdowns along with the loss of countless international migrants which were an important source of tenants in the past.

The impact of the past two years has been felt more severely in the unit rental market. Whilst the median rental on units in Melbourne did rise by 1.4 per cent or $5 to $375 per week in the December quarter, it still has quite a way to go before it reaches the pre-Covid record of $430 per week. Of course, the return of international travel is likely to have the greatest impact on this sector of the market.

The latest figures also indicated that Melbourne’s strongest performing regions were on the Mornington Peninsula, in the inner-South, the outer-East and the North-West, where house rents rose both over the quarter and the year.

Data like this will be good news for all those Victorians who have been holding off on purchasing a rental property during the pandemic. However, as is always the case, anyone planning on purchasing a property for the rental market should get experienced and objective advice on what to purchase and where.

If you’d like some help in sourcing the right investment property in Victoria, including exploring the potential of an off-market property that isn’t available to the general public, you can give our experienced Buyer Advocates a call this week on 9430 0000.