Domain has released new data quantifying the collapse of Melbourne’s inner-city rental market.
According to Domain, rental prices for inner-city apartments have collapsed by up to 29%, as illustrated in the below table:
“Many of these inner suburbs, like Docklands, already had a higher level of development that was weighing on rental prices, so when you then have the additional factors brought about by the pandemic then that only exacerbates those downward pressures on rents,” said Domain senior research analyst Nicola Powell, adding that many of these areas were attractive to large numbers of migrants, particularly international students.
Separate rental vacancy data released by Domain shows that Melbourne’s seasonally adjusted vacancy rate has ballooned from 1.8% in February 2020 to 5.1% in March 2021:
However, the vacancy rate in Melbourne’s CBD was more than double the city average at 11.4% in March, according to Domain.
Melbourne’s apartment rental market will likely remain weak until immigration is rebooted and international students return.