REIV analysis of the residential rental market has found vacancies are still at historically low levels.
The rental vacancy rate in Melbourne eased slightly in December to 1.2 per cent, from 1.1 per cent in November.
The situation is similar in Geelong, where the vacancy rate is 1.5 per cent, in Bendigo 1 per cent and Ballarat 1.2 per cent.
Falling interest rates provide prospective buyers with an opportunity to buy their own house, a positive for renters who aspire to home ownership.
But for those continuing to rent, the outlook is grim.
Australian Bureau of Statistics data shows housing construction continues to decline and we expect the rental market to remain tight in the short to medium term.
To overcome such a shortfall, innovation and new thinking is required to increase supply.
One such idea is to allow renters to get government subsidies to buy property, even though they may not intend to live in it for several years.
Young adults living with their parents or choosing to rent in ‘lifestyle areas” such as St Kilda or Fitzroy could still use government help to buy a property in an area they may like to live in later.
Effectively, by bringing forward homebuyer help that the recipient would have received at a later date, a platform is provided to increase the supply of property and help ease the tight rental market.
The housing market cannot escape the pressures the economy will face this year. The government has a role in helping find solutions to ensure renters get relief.
If interested in learning more about this update please contact me today!
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