From SQM Reserach today comes news that the rental vacancy rate spiked in December, rising by 0.4% to 2.3% nationally:
According to SQM, much of this increase in rental vacancies is due to seasonality, “with many rental properties becoming vacant during this period due to possible reasons such as university students vacating student accommodation or rental properties situated near their respective campuses, due to the end of year break”.
Indeed, when compared to December 2011, the rental vacancy rate has remained flat, with the number of vacancies rising by only 1,599 over the year nationally.
Melbourne once again recorded the highest vacancy rate of the capital cities, revealing a vacancy rate of 3.6% and a total of 15,484 vacancies. That said, it also recorded the largest yearly decrease in vacancies, falling by 0.3% to 3.6%.
Canberra has recorded the highest yearly increase in vacancies, climbing by 0.9% to 1.7% since December 2011. By contrast, Perth recorded the tightest vacancy rate of the capital cities, revealing a vacancy rate of 0.9% and coming to a total of 1,710 vacancies.
SQM’s calculations of rental 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. A full explanation of SQM’s methodology is available here.
Crikey. Canberra vacancy rate almost doubled there, from 482 vacancies in Dec 11 to 858 in Dec 12.
I used to track the total number of rentals available while I lived there. I was shocked to look at allhomes.com.au the other day and see the increase – much higher than any time from 2009 to 2011.
REIWA has Perth at 2.3%.
I know it’s still tight here but I wouldn’t be surprised if it’s not as bad as 0.9% in reality (maybe not 2.3% either though, probably somewhere in between). Our lease just got renewed for no increase and friends who’ve been looking for rentals have found it easier than we did a year ago.
And despite the tightness we’re still paying 10% less than we used to in Canberra for a place that’s somewhat better.
Yeah, I agree. My landlord is coming back and I’ve just got a place through my present REA for $15pw more, but a better place. This lease is for 13 mths, so from first signing up nearly 2 yrs ago my rent will have gone from 400 to 430 in 3 yrs, hardly the rate the RE bs merchants would have you believe is happening in the market.
I knew he was coming so started looking late December, found lots of landlords (REAs) trying it on, if a place was well priced it would go on the first viewing, otherwise it would be left hanging around for weeks. Some people are just stupid and greedy!
http://greensmps.org.au/content/media-releases/greens-push-housing-solution-soaring-rents-squeeze-west-australians
“Senator Ludlam said the Greens “Convert to Rent” initiative would deliver affordable rental properties at a minimum cost and without adding to urban sprawl.
“There are thousands of unused potential dwellings across Western Australia. For example, the vast majority of inner-city Perth shops have empty spaces upstairs. A 2010 City of Perth audit found 80,000m2 of space going to waste. This is a huge untapped resource, and Convert to Rent would provide grants to owners to make them liveable and available as low-cost rentals.”
and
“• Cost: $115 million would fund 5000 conversions including a minimum 15% funding to be available for modifications suitable for people with a disability.”
If 5,000 conversions were taken up then that would take vacancy rates up to ~3.5% based upon the SQM data above.
Smacks of more government interference but at least it highlights the wastage of inner city space that is still occurring.
Darwin’s vacancy rate has jumped from 1.1% in November 2012 to 1.7% in December.
Power and water rises of 40% were announced in November. Other costs of living which are notoriously higher than the southern states are fuel around $1.59 a litre, food and rent.
Inpex gives it middle management and above $1400 a week to pay rent. As a result Agents are now asking absurd prices for hovels.
Front page of the NT News today is “We gotta get out of this place” with the byline of – Territory removalist run off his feet: ‘So many people are moving out of Darwin, its unbelievable’.
The new state liberal government has put a hold on the development of the new city of Weddell (unofficially they have canned the project) Wedell was supposed to house 50,000 people by 2020. Instead they are going to create 2,000 affordable homes in the next 4 years. This amount is pure trivia and will only exacerbate the problem.
So there is a snapshot of whats happening in Darwin. I expect it to be insane here for two more years until the Inpex project is complete and then the market will collapse.
“(unofficially they have canned the project)”
Any explanation as to why, Bubbley?
Cost blow outs in the NT Gov’s budget.
They are scrapping everything except “jobs for the boys”. Numerous dinosaurs from previous CLP governments are resurrected as consultants. They are being paid $200k for 6 months work and their accommodation is paid for.
Aaah, that quality rag the NT News. You might have caught this 2011 article Bubbley
http://blogs.crikey.com.au/thestump/2011/02/12/best-man-left-bleeding-after-being-hit-in-head-by-flying-dildo/
We all know why they’re moving out of Darwin – it’s a warzone with all those flying phalluses LOL
We aim to live up to Russia’s flying phallus’s.
My personal NT news head line was “Why I stuck a cracker up my clacker” (and yes some fool did and stuck his stupid mug on the front page)
NT New won an award for that one.