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Rental vacancies increase in Melbourne

Melbourne has seen rental vacancies rise to the highest level seen in 2013.
Rental vacancies rose in Melbourne over August, according to the Real Estate Institute of Victoria (REIV).
It claims that rental vacancies in Melbourne rose from 3.2 per cent in July to 3.7 per cent in August, which is the highest level it has seen all year.

However, available vacancies vary regionally. For example, vacancies close to the central business district have declined to 2.9 per cent while inner city vacancies have risen to 4.7 per cent.

REIV says that the increase in rental vacancies was largely driven by empty dwellings to rent in the inner suburbs.

Experts fear that there is an oversupply of units in Melbourne, with vacancy rates having been on the rise.

Andrew Leoncelli, managing director at CBRE Victoria, says that, in fact, there is an undersupply of large units. He claims there is too much of a focus on selling to investors when really developers should look towards owner occupiers.

Posted by Steve Douglas

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