Recently recognised vacancy rates, indicate a “balanced” rental market of around 3 per cent in Melbourne’s inner city suburbs. A “balanced” market is one where demand from tenants equals the supply of available property. MICM Property is maintaining a stable vacancy rate of 2.1 per cent, and 2.3 per cent on average year round, consistently lower than the considered ”balanced” market rate recorded.
The reported Melbourne wide area vacancy rate of 3.4 per cent in June is below the recorded high of approximately 4 per cent in December 2011. However, there are seasonal trends in the months of January and February, where traditionally the volume of tenants moving is double that of other months.
MICM Property’s view of the strong demand for inner city living is reflected in their understanding of people’s needs and the market. “We consistently see our vacancy rate below the reported figures, as we understand the strong demand for Melbourne inner city living,” says MICM Property Director Keith Bayliss. “There is a strong desire to live in Melbourne inner city areas due to the many benefits on offer such as, the close proximity to the workplace, education services and many varied entertainment options.”
According to the Australian Bureau of Statistics (ABS), the fastest growing segment of the Australian housing market is the single person households. Changes in family structure, an ageing population, and extended periods between leaving the family home and starting a family, all contribute to changing trends that will lead to an increase in demand for appropriate housing types that will last into the future.