Melbourne's vacancy is hovering around 3% ...it's not that bad.
Rents have increased by almost 10% in the last 12 months.
Where?
My rents have slipped on properties that had tenants vacating. This includes better areas such as Caulfield and lesser/outer areas such as central Frankston. Letting times also at record levels.........five weeks plus. It took around three weeks before even the first of the dodgy applications came through in both areas. Something I've not experienced before, not even in the early 90's
*yield varies from 3-6% in Melbourne respective of property type, leverage and area.
Unless investors are manufacturing growth, from where I sit, Melbourne is sideways and shall be so for a while longer. Yields are rubbish compared to what I'm seeing in S/E Qld. I still have significant exposure to Melbourne and with the benefit of the retrospectoscope, should have sold down a few last year along with our PPOR.