Although Melbourne was previously a haven for property investors, it may be wise for them to sell up soon.
According to SQM Research, rental vacancies increased from 2.7 per cent in May to 2.9 per cent in June.
The benchmark rate indicating the balance between renters and landlords is three per cent. Therefore, if the percentage of vacancies rises much further then it will be far easier for renters to negotiate a price to suit them.
Part of the reason for this rise in vacancies could be because it is now easier to buy into the property market in Australia. With mortgage rates at a low, homes are becoming more affordable.
Managing director of SQM Research, Louis Christopher, said that another reason is that more new residential dwellings are going on the market.
The number of building approvals has been on the rise according to figures from the Australian Bureau of Statistics. With more houses available to buy, prices could be driven down moving forward.
Posted by Ravin Chatlani