Mid-sized apartments in Melbourne are now attracting higher rents than three-bedroom homes, according to new figures from the Real Estate Institute of Victoria (REIV).
According to the latest quarterly figures from the REIV, two-bedroom apartments attract a median weekly rent of $390, up 1.3 per cent on the December quarter, compared with $370 a week for a three-bedroom house.
The highest rental growth for the quarter was in one-bedroom apartments, with this sector recording 2.7 per cent growth and lifting the weekly median rent for these apartments to $340 a week.
CEO Enzo Raimondo said the fast expansion in new-build apartments appears to have been a drawcard for renters.
"These apartments continue to attract good rents,” he said. “It appears that this ‘state of the art’ style of living is appealing to, and drawing, tenants across Melbourne.”
Apartments are often in prime, central and inner-city locations, while three-bedroom houses are spread across inner, middle and outer Melbourne.
“This locational factor has some bearing on rents for houses and apartments. However, the clear difference between the rental price for a two-bedroom apartment in comparison to a family home does highlight the genuine appeal of newer apartments.
“While houses boast large living areas and yards, apartments – with the latest in interior design and impressive shared facilities – are yielding higher rents.”
Vacancy rates declined slightly over the latest quarter, with the overall Melbourne rental vacancy rate sitting at 2.8 per cent, down from 2.9 per cent in the December quarter and 3.2 per cent in the same quarter last year.