It also shows the Perth metropolitan area is 2.6%.
As you correctly point out and I have been saying for a long time it is those inner city suburbs around the CBD which have been hit hard. Thankyou for confirming what I have been saying for months. This is also where the biggest drops in rent have been. Considering you had to pay $1500 a week at the height of the boom.
In most of Perth you see little change, only small increases in stock, rental prices have hardly moved. Demand is still very strong in most of Perth.
Actually, vacancy rates are heading up in all other parts of Perth as well. They just haven't reached the dizzying heights of the inner city yet. You can expect to see rental prices falling everywhere over the next 12 months.
By the way, a 3% SQM vacancy rate is not balanced. It is strongly in favour of the renter.
Actually, vacancy rates are heading up in all other parts of Perth as well. They just haven't reached the dizzying heights of the inner city yet. You can expect to see rental prices falling everywhere over the next 12 months.
By the way, a 3% SQM vacancy rate is not balanced. It is strongly in favour of the renter.
The areas I am looking at SOR have seen vacancies increase in number by over 20% in two months.
Also, latest RP sales data shows a price drop across the metro area of 1.2% over the last quarter.
With city apartment rents dropping and new stock being turned out at record pace, this is bound to feed into the wider rental market.
If you were a young couple, why rent a 3x1 in the sticks and commute when you can rent a nice apartment in the city, cycle to work and have pubs and restaurants on your doorstep?
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be rising.
It's like the construction industry, last on first off. It will flow out into the suburbs in due course. Then all the bulls will come on and say the vacancy rate is climbing because landlords are keeping them empty for tax purposes, or some other such nonsense.
Shadow was hopelessly wrong about the Gold Bull Market. What else is he wrong about?
So, how much apartment construction is still taking place in Perth atm?
I couldn't tell you numbers but they are springing up all over. There are also quite a lot of off the plan pre sales being advertised as well.
The local construction industry is responding to the high demand that existed just a year or so ago and in doing so will create a glut.
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be rising.
So, how much apartment construction is still taking place in Perth atm?
There is a lot of apartment construction happening now. Most are off the plan sales so demand is strong for them.
Over the past few years there has been a real change in buyer attitudes in Perth. As the urban sprawl spreads further out Young people or couples with no children don't want a 3x2 in the outer suburbs with an hour commute to work or city life. Apartments are the new trend and demand is strong for them.
When you look at Perths urban sprawl, you can fit the City of Mumbai within Perth and that has 20 million people, a change in buyer habits was needed.
Perths infill has started, a lot more subdivision going on in inner city areas (20km or less from CBD) and apartment living.
For a young person or couple I think it is a great option. Live in the apartment until they decide to have a family, if they want children then buy/build something bigger in the distant future. In time they can rent out the apartment to the next generation of young wanting a similar lifestyle.
So, how much apartment construction is still taking place in Perth atm?
There are quite a few projects nearing completion.
There have been warnings in the media that apartments are about to enter the market at a bad time.
You would expect the vacancies to be higher in the CBD as the office markets are contracting at around 20,000 square metres a quarter. Have been doing so for around 18 months. Obviously this would lead to less white collar jobs in the vicinity.
DFP Recruitment has released its mining and resources jobs index, which registered a 5.4% fall in August - the fourth consecutive monthly fall - with the index also down 9.9% over the quarter and by 34% over the year. Western Australia has also led the decline: The rate of decline seen over the past 12 months is concerning for all engaged within the industry. The iron ore price has recently hit 5 year lows exposing a number of the higher cost producers and we are continuing to see deeper cost cutting measures introduced.
Behind a Macrobusiness paywall - link to report is here
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