Melbourne rents tumble as vacancy rate balloons

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.

Leith van Onselen
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