Melbourne’s Rental Market Update: June 2025 Vacancy Rates 

Written by Mel Dennis | Read time approx. 2.5-3 minutes 

[Data sourced from the latest REIV Vacancy Results] 

A key indicator of rental market health, vacancy rates reflect how many rental properties are available versus those occupied. Here’s what June 2025 looks like across Greater Melbourne: 

What This Means for Property Investors & Landlords 

• Metro Melbourne at 2.8% indicates a balanced rental market. There’s healthy demand, but tenants still have options. 

• Inner City tighter market at 2.1% suggests strong demand and potentially faster leasing times — good news for investors in apartments or inner-suburban homes. 

• Higher rates in North East (3.4%) and North West (3.1%) could signal a softer or slower market, with slightly more competition among landlords. 

• Moderate rates in South East (2.7%) and Mornington Peninsula (3.0%) show demand remains steady, with rental stock neither excessive nor scarce. 

How Investors Can Respond 

Strategic Pricing 

Adjust rental rates regionally - tighter markets allow for rent increases, while softer zones benefit from competitive pricing to reduce vacancy. 

Speed Matters 

In areas with high demand (like inner Melbourne), reduce vacancy days with prompt inspections, quick advertising, and flexible leasing options. 

Enhance Appeal 

Simple improvements - like fresh paint, updated fixtures, and regular garden/mulch maintenance — can help your property stand out in more competitive zones. 

Maximise Occupancy 

Consider flexible leasing (e.g. shorter terms, orientation towards young professionals) in softer markets to preserve consistency. 

Our Role in Your Rental Strategy 

At LongView, we use insights like this to craft flexible and region-specific management strategies: 

• Consistent communication and weekly advertising drives sustained tenant interest. 

• Sunday inspections - helping properties rent up to 30% faster than the average 21-day market norm. 

• Data-led recommendations tailored to your suburb’s competition and occupancy trends. 

Want a deeper look into how these vacancy rates affect your property or investment plans? Reach out for a FREE rental market review tailored to your suburb and property type. 

Key Takeaway: 

• 2–3% vacancy = a relatively balanced market with solid demand. 

• <2.5% vacancy = an undersupplied market - opportunity to increase rent. 

• >3% vacancy = softer region - use competitive strategies to stay ahead. 

If you’d like us to comment on your suburb or strategy, our team is just a message away.