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National rental vacancy rate remains stable - SQM Research; Colossal yearly increase in vacancies in Perth
Topic Started: 25 Sep 2013, 04:47 PM (1,198 Views)
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NATIONAL VACANCIES REMAIN STABLE

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Figures released by SQM Research reveal that the level of residential property rental vacancies remained largely the same during the month of August, at a vacancy rate of 2.2% and coming to a total of 61,077 vacancies nationwide.

However, when comparing the national result year on year, it is evident that vacancies are beginning to list gradually, with a 0.3% national yearly increase in vacancy rates recorded for August.

On a capital city level, perhaps the most interesting result is Perth’s colossal yearly increase in vacancies – falling by 1.0% since August 2012. SQM Research suspects this can be attributed to the downturn in the commodities boom occurring presently, with less employees seeking temporary residence this part of the country.

Canberra has recorded the only notable vacancy rate increase, rising by 0.2% during August 2013 and Hobart the only substantial decrease, falling by 0.3% over the same period.

Louis Christopher, Managing Director of SQM Research says, “Although SQM Research has observed a rapid pick up in the housing sales market of late, much of this recovery has so far been investor driven and therefore has not resulted in a mass exodus of renters to become first home buyers/occupiers.

"However, SQM Research expects that as the housing recovery continues, more first home buyers will enter the market. And in any case, supply of new stock will increase as property developers meet buyer demand; whether they are First Home Buyers or investors. So in time, we are expecting vacancy rates to continue rise from here. “

SQM’s calculations of vacancies are based on online rental listings that have been advertised for three weeks or more compared to the total number of established rental properties. SQM considers this to be a superior methodology compared to using a potentially incomplete sample of agency surveys or merely relying on raw online listings advertised.

Please go to our methodology page below for more information on how SQM’s vacancies are compiled-

http://www.sqmresearch.com.au/graph_vacancy.php?region=nsw::Sydney&type=c&t=1#terms
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Perthite
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Perth population growth is obviously tanking as I predicted.

This is a smoking gun.
Edited by Perthite, 25 Sep 2013, 09:16 PM.
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Pig Iron
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Bogan scum

Perthite
25 Sep 2013, 06:19 PM
Perth population grow is obviously tanking as I predicted.

This is a smoking gun.
so instead of growth booming out of control it's returned to normal.

call me crazy but there is plenty of upside to that.

note i said population growth, population is not falling.
I am the love child of Tony Abbott and Pauline Hanson
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Perthite
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As did I.

I think the forecast 50,000 this year. Down from 85,000 last year sounds close.

Time will tell.
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Timo
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Pig Iron
25 Sep 2013, 07:43 PM
so instead of growth booming out of control it's returned to normal.

call me crazy but there is plenty of upside to that.

note i said population growth, population is not falling.
Spruik spruik spruik, back peddle, back peddle ,back peddle.

Pop!
After a bubble has burst, no one denies that it existed. But before it does, the popular refrain is that though bubbles existed elsewhere in the world, “there’s no bubble here”. So housing bubbles are admitted to have existed in Japan, the USA, Spain and Ireland – because they’ve already burst.
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Pig Iron
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Bogan scum

Timo
26 Sep 2013, 10:59 AM
Spruik spruik spruik, back peddle, back peddle ,back peddle.

Pop!
ok then so take my bet?
I am the love child of Tony Abbott and Pauline Hanson
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Admin
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Vacancy rates tipped to rise with more buyers

25 SEP 2013 12:25 PM
Jean-Paul Pelosi

Vacancy rates across the country were steady over August but are expected to rise again as more renters turn into buyers, according to SQM Research.

The national vacancy rate is 2.2% equating to 61,077 vacant rental properties, which reflects little change from a month earlier.

However, as the national buying market continues to heat up, led by busy weekend auctions in Sydney and Melbourne, there is a general expectation that many renters will want to take advantage of low interest rates and try to buy.

Managing director of SQM Research Louis Christopher said that the property recovery has centred on investors as opposed to first homebuyers and owner-occupiers.

“SQM Research expects that as the housing recovery continues, more first homebuyers will enter the market,” said Christopher.

“And in any case, supply of new stock will increase as property developers meet buyer demand, whether they are first homebuyers or investors. So in time, we are expecting vacancy rates to continue to rise from here.”

Rental vacancy rates are a useful indicator in the property market because they compare the demand from renters with how much rental supply is actually available to them.

This in turn, can impact where buyers focus their attention.

SQM uses online rental listings that have been advertised for three weeks or more compared to the total number of properties.

Supply and demand

A high level of rental supply can be misleading in some instances though, especially if the available stock is not enticing. For example, there might be strong demand among renters in a city but perhaps not in areas where stock levels are high.

“My experience – regardless of the stage in the property cycle – is that competition is fierce in rental markets,” said director of Matusik Property Insights, Michael Matusik.

“Prospective tenants always compare your property to whatever else is on offer. They just don’t blindly accept the asking rent without doing their homework.”

“Too much commentary is based around the total level of supply. Poor product doesn’t rent well, regardless of the lack of supply.”

Perth’s changing economy

Perth is a market that has an exceptionally high level of supply because of its stream of temporary workers that take jobs in the resources sector. When employment opportunities increase in the city, so does its level of renters.

Several mining projects have wound up there lately however, especially in gold and iron ore mines, meaning vacancy rates have increased over the year to August to 1.6%, by SQM’s figures.

In real terms, the number of vacant properties in the city has increased from 1,177 to 3,032 over the year.
Melbourne’s oversupply

As might be expected given the amount of new apartment development in Melbourne, its vacancy rate is the highest in the country at 2.7%.

The quality of these units is high in many instances but the pricing can also be higher than average as a result, with some one bedroom units by the Yarra River selling for around $600,000, for example.

The rent on this type of apartment is commonly in the range of $375 to $500 per week, depending on the view or amenities.

Canberra and Brisbane vacancies have also had notable increases on a yearly basis, which to some extent has been attributed to weaker employment conditions and lower confidence in the local market.

Read more: https://www.mywealth.commbank.com.au/property/vacancy-rates-might-rise-with-more-buyers-news20130925
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Blondie girl
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Yeah,
It's gonna be an interesting ride to observe what the future pans out.
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$
It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged
Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do.
Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
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