Victoria’s rental market continues to outperform expectations, underpinned by robust fundamentals and sustained demand across metropolitan and regional areas. REIV data shows vacancy rates sitting at 2.5% in metropolitan Melbourne and 2.1% in Regional Victoria,1 signalling high demand and resulting in strong rental yields.
Population growth continues to be a key driver, with Victoria leading the nation by welcoming 132,600 new residents in the 12 months ending Q2 FY25.2 This growth underpins steady demand for rental housing and intensifies competition for quality properties – favouring investors ready to act. The state’s 2.1% annual population growth (the second highest nationally)3 has contributed to yearly rental increases of 5.8% for three-bedroom houses and 4.5% for two-bedroom dwellings, including townhouses and apartments.4
