It seems that Melbourne’s booming dwelling construction is having the desired effect, with the state’s rental vacancy rate hitting a seven year high of 4.4% according to SQM research:
This compares to the national rental vacancy rate of 2.4%:
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In both charts, there is an unmistakable seasonal element to a December spike but, equally, there’s a very obvious series of higher highs too, with Melbourne shot into nose-bleed territory. Melbourne’s gross yields are only 3.7% for houses and 4.3% for units (the lowest in the nation) and there’s lots more construction in the pipeline for several years. Negatively geared Melbourne property investors be warned.
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