This three-bedroom house at 3 Leighton Green, Derrimut can be leased for $530 a week.
Melbourne tenants are fleeing the rental market in droves and purchasing their first homes as the city records the biggest annual rise in its vacancy rate compared to all capital cities.
PropTrack research revealed the city’s available rentals homes have increased for seven consecutive months — rising by 0.33 percentage points in the 12 months to September to reach 1.67 per cent.
Melbourne also has the second-highest vacancy rate of all markets behind Canberra’s 1.74 per cent.
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Australian Bureau of Statistics lending data showed in the year to August, more than 37,500 Victorians signed a loan for their first home — 24.6 per cent of the entire number of loans across the state.
That’s about 5000 more first-home buyers applying for loans compared to the 12 months to August 2023, or up 15 per cent.
1/26 Lawrence Court, Altona North is available to rent.
This three-bedroom townhouse can be leased for $750 a week.
PropTrack senior economist Anne Flaherty said of all the markets in Australia, Melbourne was one of the best places to be a first-time buyer right now.
“We’ve seen property values decrease over the past 12 months in Melbourne, so it’s slightly more affordable. And then I think there’s a huge amount of stock on the market for sale,” Ms Flaherty said.
“In Melbourne, there were 16 per cent more homes available for sale in September compared to September last year, so there’s a lot more choice on the market.”
She added that investors continuing to sell off in the city created a “fantastic opportunity” for first-time buyers, as investors often purchased similar types of properties.
PropTrack research also showed regional Victoria’s vacancy rate was 1.09 per cent, dropping 0.13 per cent in the past 12 months.
The state’s north west had the lowest vacancy rate of any region in Victoria sitting at 0.53 per cent while Melbourne’s west had the highest of 2.17 per cent.
Buxton Inner West director Matthew John said tenants had taken the opportunity while interest rates had been on hold to get their finance in order to buy.
He added that prices had dropped by 4 to 12 per cent in some western suburbs, and buyers were taking advantage of this before interest rates dropped and prices started to go back up.
This four-bedroom house at 576 Anzac Rd, Robinvale can be leased for $550 a week.
Robinvale is located in Victoria’s north west — the region where the rental vacancy rate is the highest of all the state.
However, Property Mavens chief executive and buyer’s advocate Miriam Sandkuhler said not every tenant was in a position to buy.
Ms Sandkuhler said some asset rich Victorians who wanted the cash were selling up, which were being purchased by owner occupiers and not making it back into the rental pool, adding pressure to the housing crisis.
She noted that some renters were going back to their parents’ homes and using that opportunity to save money and buy something down the track, sometimes with the help from the bank of Mum and Dad.
Some were also choosing to “rentvest”, or purchase a property they rent out while renting themselves, just to get a foot into the market, she said.
“We’ve probably hit the bottom of the market and the markets will start recovering, particularly in Victoria and regionally in Victoria,” the buyer’s advocate said.
“There are definitely people taking advantage of that.”
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sarah.petty@news.com.au
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