With the recent stock level conditions, which is declining, experts say that house rentals in Melbourne will continue to increase. Domain Group Rental report says that last March, the median rental price in Melbourne cost about $430 weekly – that’s $1.2 percent growth, while the unit prices are now at $410, which is a 2.5 percent growth. Inner Melbourne experiences the highest growth for houses both quarterly and annually. The houses in inner Melbourne which includes areas such as CBD, Moonee Ponds, Elwood and Thornbury now has median pricing of $615 per week compared to $590 about a month ago. While the units in North East of Melbourne experienced growth to $360 per week. This growth is actually the highest quarterly, and second highest annually in Melbourne for areas such as Preston, Kinglake, and Hurtsbridge. Mornington Peninsula took the top spot in terms of annual growth as it grew up to $330 – a growth of 6.5 percent.
There was a significant decline in rental listing experienced all over Melbourne, while there was an increase in the North West part of Melbourne according to a data report made by Domain Group. In fact, the second biggest drop was in Mornington Peninsula – over 14.2 percent, while the outer east saw a drop to 18.5 percent for the units, while 15.3 percent for the houses.
According to the Vice President of Real Institute of Victoria Leah Calnan, developers should build more three-bedroom apartments because they are needed to accommodate more families who are looking into moving to inner Melbourne. Rental fees were on the rise, in fact, the demand was particularly high during January and February but the rental yields were down although, by March, it rose a bit. In terms of prices, houses were growing faster than rentals, but right now, it’s the other way around.
When we talk about quarter growth in other parts of Australia, in the state of Tasmania, the highest when it comes to houses can be seen in Cobart with $420 – that’s growth of 6.3 percent, while for the units, it was Canberra with $450, a growth of 4.7. Unfortunately, in Darwin, no growth can be seen. Houses rate about $530, a 3,6 drop, while units are priced at $410 – down 1.2 percent.
Because of the result of this study, people should expect an increase in prices of house rents in the next few months.