The data shows that the total number of rental properties listed on the Realestate.com.au website for September decreased by 20.2% compared to the same period last year, falling below the five-year average for September by 30.2%.
This marks the lowest level of property listings in September in over a decade, further exacerbating the tense situation in the rental market. The tightness in the rental market is evident not only in the reduced number of available properties but also in the continuous rise in rents and historically low vacancy rates.
According to Cameron Kusher, Director of Economic Research at PropTrack, Melbourne's median rent has reached historically high levels, with house rents at AUD 500 per week and unit rents at AUD 495 per week, representing an increase of approximately 8% and 18%, respectively, compared to 12 months ago.
At the same time, Melbourne's current vacancy rate is 1.15%, and compared to the same period last year, the inquiry volume for each rental property has increased by over one-third. Mr. Kusher states, "We have never seen a rental vacancy rate this low, and to find a more difficult period in the rental market than now, we have to go back a long time."
Several factors contribute to the challenges in Melbourne's rental market. Firstly, a shortage of residential development has led to a lack of supply, and the increase in immigration levels has also added pressure to market demand.
Secondly, the phenomenon of landlords profiting excessively due to the shortage of properties has sparked widespread social concern. In its latest annual report, the Victorian Tenants Union pointed out that rents in some areas of Melbourne have risen significantly, putting some tenants at risk of homelessness due to an inability to afford the increased rent. This situation particularly impacts low-income and gradually categorized middle-income groups.
To address this situation, the government and relevant authorities need to take effective measures to alleviate the tense situation in Melbourne's rental market. First and foremost, there should be an increase in housing construction efforts to boost the supply of homes, especially in the construction of public housing, to meet the housing needs of different income groups.
Consideration can be given to implementing reasonable rent control policies or providing rent subsidies to eligible tenants to ease their economic burden. Additionally, strengthening regulation of the rental housing market, standardizing rent increases, preventing landlords from maliciously raising rents, and safeguarding the legitimate rights and interests of tenants are also crucial.
