Vacancy Rates Increase Marginally in November
by Louis Christopher, CEO
Data released by SQM Research today has revealed the national residential rental vacancy rate increased marginally in November 2019 to 2.2% from 2.1% recorded in October. The total number of vacancies Australia-wide is now at 75,947 vacant residential properties. November 2018’s vacancy rate was 2.3%.
All states recorded an increase in vacancy rates with Darwin and Hobart’s vacancy rate remaining steady at 3.1% and 0.5% respectively.
Sydney continues to record the highest vacancy rate at 3.4% and since November 2018, the city's vacancy rate has been above 3.0%.
Melbourne, Brisbane and Adelaide all recorded minor increases in vacancy rates over the month of 0.2%. Perth and Canberra increased by 0.1%.
The rise in vacancy rates across most cities was expected in November as the year draws to a close and demand for rental accommodation drops. Sydney’s oversupply of rental accommodation continues, with the vacancy rate up from 3.2% a year ago. The city is still a renter’s market as is Darwin.
Our expectation is rental vacancy rates will rise again in December due to a seasonal decline in rental demand, predominantly driven by students returning back home.
Over the month, Capital city asking rents increased 0.2% for houses but declined 0.2% for units as at the 12 December 2019, to record asking rents of $550 per week for houses and $434 per week for units. In comparison, over the 12 months, asking rents declined 0.9% for houses and 0.5% for units.
Melbourne, Brisbane, Perth, Adelaide and Hobart all recorded increases in asking rents for both houses and units over the month. Hobart recorded the highest increases in asking rents of 4.0% for houses.
Darwin recorded the highest decrease for house rents of 3.9% but unit rents increased by 1.0%.
Sydney managed to increase asking rents for houses by 0.3% but recorded rent falls of 0.7% for units. Canberra also increased house asking rents by 0.9% but decreased by 1.8% in units.
DISTRESSED PROPERTY OF THE WEEK
21 Cammeray Drive, St Georges Basin NSW 2540
A spacious 5-bedroom, 2 bath home in the sought after location of St Georges Basin in the south coast region of NSW, is for sale at a reduced price of $479,000 - $499,000. It was initially listed at $580,000 - $610,000 in December 2018. This property was last sold for $36,000 in December 1998 when it was newly built.
Sitting on a 660 sqm block, the home features a custom-built kitchen with timber benchtops; generous main bathroom; a large master bedroom with a walk-in robe and ensuite and 4 other over-sized bedrooms. Outside is a covered outdoor entertaining area with a near new spa, a sun deck, established, well maintained gardens, double lock-up garages and 8 solar panels.
The home is in a great location just a short walk to local schools, parks, shops, sports fields and the shores of St Georges Basin plus a short drive to Jervis Bay and all that the south coast has to offer.
Asking prices for houses in postcode 2540 have increased 6.0% over 3 years and 6.5% over 12 months. Over the past month, there has been a smaller 0.5% increase. Based on current data, asking prices for houses in postcode 2540, range between $530,000 to $635,000. Unit prices have had greater growth having increased by 10.4% over the month, after a 27% increase over 3 years.
Asking rents for houses have decreased over the last 12 months by 1.4% in the area but have increased by 5.1% over the month. With a low vacancy rate of 2.1%, which has declined from 3.1% in July 2019, this house could be a good investment property. A Gross rental yield of 3.1% can be achieved for houses.
This is a great holiday destination and makes an ideal weekend getaway, a permanent family home or an investment property.
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