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Rental vacancies rising in Melb...

Rental vacancies rising in Melbourne

Higher rental vacancies suggest more people are looking to buy in Melbourne.

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

All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or Australasian Taxation Services Pty Ltd.

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