- 490 rental apartments to hit the Melbourne CBD market
- Melbourne (3000) has just over 700 rentals available, not including the newly added Mirvac BTR
- Vacancy rates in Melbourne (3000) are 2.6%, Melbourne (City) is 1.3%-1.5%
Almost 500 new rental apartments have hit the Melbourne market at a time of rental crisis around Australia.
National vacancy rates across the country are sub-1% according to Domain and SQM Research, with Melbourne’s most recent vacancy rate recorded at 1.5% according to SQM Research, and 1.3% for Domain.
Melbourne vacancy rates
Melbourne briefly saw a peak of over 30,000 listings in early 2021, with pre-pandemic figures typically between 19,000 and 12,000. Currently, it’s around 12,800.
Speaking more specifically about Melbourne, postcode 3000, the pandemic peaks were around 2,300 rentals, with the latest figures closer to pre-pandemic levels of a little over 700 rental listings.
Weekly rent listings, Postcode 3000
How much does it cost to rent in Melbourne? For units, the pandemic low was around $360, but has now rebounded to higher than pre-pandemic at well over $400 per week.
Asking rents, Postcode 3000
New apartments open at Queen Victoria Markets
Mirvac (ASX: MGR) recently opened LIV Munro, the company’s first Melbourne build to rent project, and the company’s second in Australia – after LIV Indigo in Sydney. The company is set to open more in Melbourne (LIV Aston and LIV Albert Fields) and in Brisbane (LIV Anura).
The build to rent project kick starts the City of Melbourne’s $268 million renewal of the QVM precinct, and delivers 490 rental apartments in the Melbourne CBD, adding some 60%-70% more capacity to what is currently available in the 3000 postcode.
LIV Munro is targeting an 8.1 NATHERS rating.
Mirvac CEO & Managing Director, Susan Lloyd-Hurwitz, said Mirvac was proud to play a role in catering to the full spectrum of housing options, and provide a new option for Australians looking for a long-term rental solution with security of tenure and a connected neighbourhood.
“Creating thriving communities is what we do best, and to be able to provide quality rental accommodation that provides a wonderful living environment with security of tenure and well-designed, sustainable spaces with community at their heart, aligns with our purpose to reimagine urban life,” she said.
“More Australians than ever before are renting, and renting for longer, with residential vacancy rates at 16-year lows. The average age of people buying homes is getting older and BTR provides an alternative option for this growing pool of renters.
“BTR provides security, connection, and community, but without the rental bond payment, without interest rate rise stress, and without the land or stamp duty taxes that all make purchasing a home unobtainable for many Australians.”
Lord Mayor of Melbourne Sally Capp said it’s never been more important for people to be able to access affordable housing options within the inner-city.
“Due to changing lifestyles and the affordability challenge more Australians are choosing to rent than ever before. This development is in an area of our city benefitting from a massive $268 million renewal under the City of Melbourne’s Queen Victoria Market Precinct Renewal program.”
“LIV Munro is a leading example of urban design done well. It caters to a range of renters, it fosters a sense of community and it is done with the hallmarks of sustainability at its core,” said Ms Capp.
