REIV CEO, Enzo Raimondo has said that the latest REIV rental vacancy report has shown a further tightening the rental market in August and September.
“It is concerning that the availability of rental accommodation is still at a 25 year low.
“The continual low vacancy rate will result in more upward pressure on rents, further reducing affordability and access to accommodation.
“The number of rental vacancies in Melbourne has fallen from 1.6 per cent in July to 1.2 per cent in September. Over the same time the vacancy rate has dropped from 1.5 to 0.9 per cent in the inner city and from 1.7 to 0.9 per cent in outer Melbourne.
“The situation is similar in each of Victoria’s major regional centers, in Geelong and Bendigo the vacancy rate is 1.6 per cent and in Ballarat there is a 2 per cent vacancy rate.
“There is now an urgent need for local, state and federal governments to address this issue by removing disincentives for private sector investment in rental accommodation.
“The current taxation regime is unfairly discriminating against private sector investment, which provides approximately 90 percent of Victoria’s rental accommodation. Whichever party wins the Federal election should immediately introduce financial incentives to encourage investment in new rental accommodation in locations that people want to live.
“The state government should equalise the stamp duty paid by investors with that paid by owner occupiers and we need to ensure that planning approval processes do not unnecessarily hamper residential development” Mr Raimondo concluded.
| Sep 2007 | Aug 2007 | July 2007 | ||
| MELBOURNE | Inner (0-4km) | 1.1 | 0.8 | 1.3 |
| Inner (4-10km) | 0.8 | 1.7 | 1.6 | |
| Inner Total | 0.9 | 1.4 | 1.5 | |
| Middle | 1.7 | 1.4 | 1.6 | |
| Outer | 0.9 | 1.3 | 1.7 | |
| MELBOURNE TOTAL | 1.2 | 1.4 | 1.6 | |
| GEELONG, REGION & BARWON | 1.6 | 2.1 | 1.4 | |
| BENDIGO & LODDON | 1.6 | 2.1 | 1.8 | |
| BALLARAT & CENTRAL HIGHLANDS | 2.0 | 2.1 | 4.3 | |
| REGIONAL VICTORIA TOTAL | 2.3 | 2.5 | 2.6 | |
| VICTORIA TOTAL | 1.5 | 1.7 | 1.9 | |
NOTE: The number represents the percentage of rental homes that are vacant.
