According to the ABS, the value of loans for the purpose of investment and subsequent rent has increased by 23.7 per cent over the past twelve months. Over the same period, the value of loans for home buyers that plan to live in their homes also increased, but only by 12.3 per cent.
“The current tight rental market seems to be attracting investors back into residential (property),” said REIV chief executive officer Enzo Raimondo. “The vacancy rate is very low in most parts of Melbourne and particularly low in the inner-city where only 1 per cent of rental properties are available.”
According to the REIV, vacancy rates in metropolitan Melbourne fell to 1.4 per cent in May 2007 (the most recent statistics available). This compares to 1.7 per cent in May 2006.