Ensure you never miss an issue of the
real estate business bulletin
Unit rents outstrip family homes

Unit rents outstrip family homes

by Staff Reporter 0 comments

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.

Unit rents outstrip family homes
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
An industry where the resilient succeeds

Tim Heavyside believes that a strong support team and good foundations are paramount to success in the real estate industry, and with regu...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?