Vacancy rate data for June in Victoria has revealed the number of available rental properties are shrinking in regional Victoria to 1.8 per cent.

REIV CEO Gil King said this is in contrast with vacancy rates in Melbourne which are climbing to 3 per cent.

"More homes need to be offered up for rent to help ease the growing rental squeeze in regional Victoria," said Mr King.

At a Glance:

• Vacancy rate for regional Victoria in June is 1.8 per cent
• Vacancy rate for Melbourne in June is 3 per cent
• Rental prices are holding firm in regional Victoria

"Rental prices in regional Victoria are holding firm, with median house rents remaining unchanged on $350 per week for the past six consecutive months.

"Regional units are sitting at $300 per week, a $5 increase on the previous month of May.

"In Geelong, house rental prices grew by $10 to $400 per week, while renting in Ballarat and Bendigo regions is more affordable, with median rents in Ballarat now on $330 per week and Bendigo on $320 per week."

Mr King said the steady rental prices could be primarily attributed to property owners moving away from short term rentals like Airbnb. 

"Fall in visitors and a drop in temporary overseas workers has meant that more landlords are returning to the traditional rental market," said Mr King.

"While the availability for long-term housing in Victoria continues to grow, more rental homes are urgently needed to help keep up with the growing demand.

"Having lower rental vacancy rates throughout June means there are less homes available for people to rent, and there has never been a more important time to have a roof over your head."

As more people are looking for stable, long-term accommodation, regional property managers are inundated with rental enquiries daily, according to Mr King.

"We need more rental stock to help meet our communities constantly growing housing needs," said Mr King.

"This rental data, combined with the annual growth shown in the June Quarterly Medians, demonstrates the strength and resilience of the Victorian property market.

"Victoria’s rental market is holding firm in the face of the Coronavirus pandemic creating unique conditions."

If a buyer or a seller is looking for objective information on the market or an agency– they should visit reiv.com.au.

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