Rental returns in Melbourne are likely to rise rapidly as the rental vacancy rate fell in February, for the first time, to below 1%.
According to Enzo Raimondo, CEO of Real Estate Institute of Victoria (REIV), the vacancy rate now stands at 0.9%, which means that, of the 447,074 rental homes in Melbourne, only around 4,020 are available for rent.
Suburbs within the 4km radius of the CBD were the worst affected, with just 0.50% of rental homes vacant.
"The fact is that inadequate supply of rental properties is pushing rents up," said Raimondo. "This is a serious concern, especially for people that are looking for suitable accommodation."
The supply and demand is said to be in balance when the vacancy rate is around 3%.
REIA noted in its report that with the Victorian median weekly income falling by 0.80% in the December quarter, home loan and rental affordability have also worsened. Victorian households now need about 36.2% of the family income to meet home loan repayments. The proportion of income needed to meet rental payments increased slightly, to 20.6% from 20.4%.
Do you have more than $120k in your super fund? You could use your super to buy property - Find out how
Top Suburbs :
Get help financing your investment
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.
We value your privacy and treat all your information seriously - you can check out