The REIV says Melbourne’s residential vacancy rate rose slightly in August to 1.4%, compared with 1.2% in July. However, data from independent sources suggests the vacancy rates are considerably higher.

The institute says vacancy rates in Melbourne have remained between 1.2% and 1.4% for over 12 months. “The last time we recorded a vacancy rate of over 2% was in December 2005,” it says.

The REIV says the vacancy rate in the inner suburbs has increased from 1.1% to 1.5% but in the outer suburbs there was a tightening from 0.9% to 0.7%.

The claimed vacancy for the inner ring suburbs is particularly in dispute. Data from sqmresearch.com.au suggests many of the postcodes of inner Melbourne have vacancy rates above 4%, with many having vacancies in the 7-9% range. This is confirmed by anecdotal evidence from property professionals in the inner suburbs.