Vacancies Up for Houses to Rent in Melbourne

The availability of houses to rent in Melbourne increased last month, new research from the Real Estate Institute of Victoria (REIV) has shown.

According to the organisation, the vacancy rate climbed from 2.8 per cent to 3.2 per cent between March and April, while the median rent slipped $13 per week to $382.

The REIV's policy and public affairs manager, Robert Larocca, said there were more houses on the market because policies implemented over the last few years were beginning to improve supply.

Mr Larocca said: "ABS (Australian Bureau of Statistics) dwelling completion data for Victoria shows that in the last three years, 24 per cent more homes were built [than] in the preceding three years."

"This is particularly evident in the inner city (0-4km) where the vacancy rate is now 4.4 per cent, an increase from last month's 2.8 per cent."

He claimed the most expensive houses to rent in Melbourne were three-bedroom properties in the inner city, with the average advertised rent sitting at $580 per week.

At the other end of the scale, two-bedroom rental properties in the outer suburbs were the most affordable options at $298 per week.

"From an investor's perspective, the strongest demand is for three-bedroom houses in the inner city and three-bedroom houses in the middle suburbs. In both cases, the median advertised rent is slowly trending upwards," Mr Larocca added.

While houses for rent in the inner and outer suburbs seemed to be stable, he continued, the middle suburbs are experiencing declines.

In regional Victoria, vacancy rates remained unchanged at 3.3 per cent.

Geelong, Bendigo and Ballarat recorded availability levels of 4.4 per cent, 3.1 per cent and 2.2 per cent respectively.

REIV data from last month showed vacancy rates across Victoria dipped in the March quarter, slipping to 2.8 per cent from 3.6 per cent earlier in the year.