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National Vacancy Rates Increased Marginally in December
by Louis Christopher, CEO
New data released by SQM Research today has revealed the national residential rental vacancy rate increased marginally in December 2019 to 2.5% from 2.2% recorded in November, with the total number of vacancies Australia-wide now at 84,591 vacant residential properties. The December 2018 vacancy rate was also 2.5%.
All states recorded marginal increases in vacancy rates with Sydney recording the highest at 3.6% followed by Darwin at 3.5% and Brisbane at 2.9%. Hobart is the lowest of all capital cities at just 0.6%
Perth’s rental market is showing minor improvements with the vacancy rate remaining steady at 2.5% and asking rents increasing for both houses and units by 0.6% and 0.8% respectively.
While vacancy rates did rise in December, this was predominantly due to the seasonal movement of students and some industry specific workers. It is actually quite likely we have reached the peak in national rental vacancy rates with ongoing strong population growth absorbing current surplus rental stock over 2020.
Asking Rents
Over the month, Capital city asking rents increased 0.9% for houses and 0.7% for units for the week ending 12 January 2020 to record asking rents of $555 per week for houses and $437 per week for units. In comparison over the 12 months, asking rents declined 0.7% for houses and 0.5% for units.
Sydney, Melbourne, Perth and Adelaide all recorded increases in asking rents for both houses and units over the month. Brisbane and Hobart recorded increases in house asking rents but unit asking rents decreased by 0.2% and 0.5% respectively.
It was the reverse in Canberra where the city’s house asking rents decreased by 2.4% but its unit asking rents increased by 0.5%. Darwin’s house asking rents recorded the highest decrease of 3.0% with unit rents remaining steady.
DISTRESSED PROPERTY OF THE WEEK
58 Elizabeth Avenue, Clontarf QLD 4019
58 Elizabeth Avenue, in the waterfront suburb of Clontarf, Brisbane, has been on sale since October 2019 and the owners say they now want it sold. The asking sale price of $395,000 to be below the current estimated house asking price of $480k to $565k in the postcode 4019. The home last sold for $326,000 in November 2007.
The home sits on a 425 sqm block and has a modern open-plan kitchen, living and dining areas; 3 large bedrooms, including a spacious ensuite with dual shower and dual vanity plus a walk-in robe in the master suite; the main bathroom has a separate shower and Jacuzzi tub. There is also a separate laundry, hardwood floors and a private outdoor entertaining area.
The home is in a good location, being less than 400 metres from the water’s edge and close to Clontarf Beach State School and High School, local Aldi and IGA shops and Redcliffe Golf course. It is also close to public transport and has easy access to Brisbane CBD and the Airport.
Asking prices in the area have increased 6.2% for 3-bedroom houses over the last 3 years and 7.2% over the last 12 months. Over the last month, house prices have continued to increase by 1.3%. The unit market also shows good growth at 8.2% over 12 months and 1.3% over the last month.
Investors should note that asking rents for 3-bedroom houses has increased 1.7% over 12 months and 0.6% over the month. The unit market is also showing good growth of 4.2% over 12 months and 1.5% over the last month. The vacancy rate in postcode 4019 is low at 2.3%. Investors can earn a gross rental yield of 4.3%.
This property would suit first home owners and young families as this area offers good value properties in a family-friendly area with a community atmosphere and lifestyle benefits. Investors could also take advantage of the favourable rental conditions.
For further insights into the property market in 2020, subscribe to Christopher’s Boom and Bust Report 2020.
SQM website features free property data that is now more interactive, easier to navigate and user-friendly, so keep monitoring this market’s growth at SQM Research’s free property data. Also consider the SQM Property Explorer product for more in-depth data and property price estimator.
Current Top 5 Fastest Rental Growth
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