Archive for May 17th, 2009

Melbourne’s outer suburb vacancy rates have improved from 0.7 per cent to 1.8 per cent in the past six months, according to the Real Estate Institute of Victoria’s April vacancy rates.

Vacancy rates across Melbourne are reasonably steady having been between one and 1.4% for          12 months.  However it‘s significant that there’s a noted improvement in the outer suburbs.

The improvement more than likely due to the number of first homebuyers moving from rented accommodation into their own homes with the assistance of the grants, bonus and boosts.

The March quarter median prices showed that most of the activity in the marketplace has been in the outer suburbs; for instance Craigieburn, Melton South, Hillside, Epping, Caroline Springs, Werribee and Meadow Heights – all outer suburbs of Melbourne very popular with first homebuyers.

It‘s great news for renters if a by-product of the grants, bonus and boosts is an improvement in availability of rental accommodation, however monitoring of the situation over the next few months will tell of any continual improvement..

We’d consider that the rental market would be in balance once we reach a Melbourne-wide vacancy rate of 3%.

The last month’s REIV members figures show a very minor change in the inner suburbs where the vacancy rate moved from 1.5 to 1.3 per cent and in the middle suburbs where it moved from 1.4 to 1.3 per cent.

The value of commercial building permits in Victoria increased in the March quarter, despite there being a fall in the state’s building industry overall.

Victorian Building Commissioner Tony Arnel said that when compared to the same period in 2008, the value of building permits in the state has decreased by 11 per cent to reach under $4.2 billion!

Looking at data for building use, commercial building permits are the only building use category to increase, up 8% to $793 million!

Hospital and healthcare recorded the biggest fall of the quarter dropping 55%, industrial fell 46%, public buildings by 4%, retail by nearly 27%, residential by 17% and domestic by 3%!

According to Mr. Arnel, North Central was the only Victorian region experiencing an increase in the value of permits issued with nearly a 23 per cent increase when compared to the same period of 2008.