Rising median rent for Melbourne apartments good for investors
Purchasing residential property in Victoria could be a great move to make in the coming months. As Melbourne becomes one of the main metropolitan hubs in the nation, buying a property in the region is a potentially profitable decision - especially medium density dwellings like apartments within the city.
Data released earlier this month by the Real Estate Institute of Victoria (REIV) has illustrated this point. According to an April 16 statement, Melbourne citizens are willing to pay higher rents for mid-sized apartments as opposed to detached homes across the city. In fact, the statistics have shown that two-bedroom apartments in the city attract a median weekly rental of $390 - an increase of 1.3 per cent over the December quarter.
This is in comparison with three-bedroom homes across the same region, which currently have a median weekly rent of just $370. However, the highest rental growth seen within Melbourne over the quarter was for one-bedroom apartments. These rose by 2.7 per cent to a median weekly rent of $340 and reinforcing the potential investment opportunities presented by medium density dwellings in Melbourne.
REIV Chief Executive Officer Enzo Raimondo said the rapid expansion of multi-unit dwellings was influenced by the rising demand for these properties, which in turn has provided renters with a wide range of different accommodation options to choose from. Apartments in prime, central and inner city locations were some of the highest yielding across the region.
"These apartments continue to attract good rents. It appears that this 'state-of-the-art' style of living is appealing to, and drawing tenants across Melbourne," said Mr Raimondo in the April 16 statement.
"This locational factor has some bearing on rents for houses and apartments - however the clear difference between the rental price for a two-bedroom apartment in comparison to a family home does highlight the genuine appeal of newer apartments."
Mr Raimondo also pointed out the low vacancy rate across the region, which could be encouraging for potential investors - highlighting the demand for rental accommodation throughout the city.
Speaking to a real estate agent about the potential of securing new residential property for your investment portfolio could be the next step to take. As these developments continue to grow and appear across the region, there could be a large number of options in Melbourne alone.