Rental vacancy in Melbourne tightens over October
Anyone who has been sitting on the fence about purchasing investment property in Victoria could be interested to hear about the shrinking vacancy rates in Melbourne over the last month.
This could provide a great opportunity for buying property with investment at heart.
It's becoming even tougher for renters to get a foot in the door, especially with the recent growth in auction clearance rates and strength of the property market pushing many of them into a renting situation rather than purchasing their own homes.
However, it's great news for potential investors, who are gearing up to take advantage of the low supply and possibility of charging higher rents in an extremely competitive market.
For example, Melbourne's overall vacancy rate dropped from 2.9 per cent down to 2.7 per cent in October. This is the lowest recorded vacancy rate for the city this year, which could be indicative of a Christmas renting rush in the Victorian capital city.
The easiest suburbs in Melbourne to find rental properties were in the inner city. There was a vacancy rate tightening of 0.2 percentage points in this area - dropping from 3.1 per cent down to 2.9 per cent. This is, however, the second consecutive month of drops after falling from 4.7 per cent in August.
Moving into the outer suburbs, there is an even tighter squeeze. The suburban vacancy rates were just 1.8 per cent, after dropping from 2.5 per cent in September. And suburbs that were more than 20 kilometres out of the city centre sunk to a vacancy rate of just 1.2 per cent.
In a November 25 statement, Real Estate Institute of Victoria President Enzo Raimondo said that the investment market was rapidly growing, with a number of investors putting their properties up on the rental market in order to make a great profit.
"Investors are increasingly active in the Melbourne housing market and the latest Australian Bureau of Statistics housing finance data showed a rise in the value of investment housing loans - up by 5.2 per cent, seasonally adjusted, in September," said Mr Raimondo.
If you're interested in purchasing investment property in Melbourne, now could be the perfect time to take the plunge and begin looking into the Victorian capital's real estate market.