^Source: Domain rental vacancy report, May 2021
Despite performing relatively poorly, Melbourne vacancy rate tightened more than any other capital, from 4.2 per cent in April.
Domain senior research analyst Nicola Powell said extended lockdowns in the state would impact the city.
“Vacant rental listings may increase in regions with a high proportion of people working in the hospitality and tourism sectors,” Powell said.
“Those who have had a significant reduction in hours may be forced to cut costs and move in with family or friends.
“Vacancy rates are also likely to remain particularly weak in areas with a higher proportion of short-term rentals as ongoing outbreaks affect interstate travel and sentiment towards travelling to Greater Melbourne.”
Home owners in Melbourne were trying to get ahead of the curb with the rate of homes selling before auction doubling.
Meanwhile, in a rare occurrence, house prices were on the rise in every capital city during May and 97 per cent of sub-regions.