News Release Real Estate Institute of Victoria
16 April 2014
Melbourne apartments hit new high, outstripping family homes
Melburnians are embracing apartment living, with mid-sized apartments attracting a higher rent than three bedroom houses across the city.
The new REIV data show that two-bedroom apartments attract a median weekly rental of $390, an increase of 1.3% on the December quarter. The rental compares to $370 a week for a three-bedroom house.
And the highest rental growth for the quarter was in one-bedroom apartments, with this sector recording 2.7% growth – lifting the weekly median rental for these apartments to $340 a week.
REIV CEO Enzo Raimondo said that 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.”
Mr Raimondo noted that 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.”
The REIV produces weekly rentals and vacancy rates across Melbourne on a quarterly basis to inform the investment community and public. The information provides guidance on rental levels and vacancy rates.
Mr Raimondo said vacancy rates had declined slightly over the quarter and remained low. He said the overall Melbourne rental vacancy rate was 2.8%, down from 2.9% in the December quarter and 3.2% in the same quarter last year.