The Melbourne rental market stumbled in April, with the inner-Melbourne vacancy rate spiking by 1.6 per cent, according to the Real Estate Institute of Victoria (REIV).
The latest market data shows the vacancy rate for Melbourne increased from 2.8 per cent in March to 3.2 per cent in April and the median rent for a house dropped by three per cent from $395 to $382 per week.
Increasing vacancy rates and no overall increases in median rents is a sign of poor management from the government, according to REIV policy and public affairs manager Robert Larocca.
“The rental market is showing the impact of policies over the past few years that were designed to boost the supply of dwellings,” Mr Larocca said.
“ABS dwelling completion data for Victoria shows that in the last three years, 24 per cent more homes were built than in the preceding three years
“This is particularly evident in the inner city where the vacancy rate is now 4.4 per cent, an increase from last month’s 2.8 per cent.
“Rents for houses in the middle suburbs are recording reductions whilst in the inner and outer suburbs they are stable."
Median asking rents for houses in regional Victoria have fallen by two per cent this month and are now at $295 per week.
“In regional Victoria, the vacancy rate remained stable at 3.3 per cent with Geelong recording a vacancy rate of 4.4 per cent compared to 3.1 per cent in Bendigo and 2.2 per cent in Ballarat,” Mr Larocca said.