The Real Estate Institute of Victoria (REIV) has released its rental market snapshot for July 2020, which shows Melbourne’s vacancy rate ballooning to 3.2% and median house rents plunging by 3.2%:
Data from other providers tells a similar story.
Domain reported that Melbourne’s rental vacancy rate has nearly doubled since March, from 1.7% to 3.2%:
Meanwhile, SQM Research reports a vacancy rate for Melbourne of 3.1%, up from 2.0% in March:
Meanwhile, CoreLogic reports that Melbourne rents have fallen by 0.7% (houses) and 3.1% (units) since March:
The severe increase in rental vacancies in Melbourne makes sense given it has been hardest hit by COVID-19 lockdowns. It is also most exposed to the collapse in immigration:
Meanwhile, the supply pipeline remains above the decade average, especially for apartments:
Rents are all but guaranteed to fall under these conditions.