NATIONAL VACANCY RATE DECLINES IN FEBRUARY - SQM Research Residential Newsletter 17 March 2020

Vacancy Rates Decline in February

by Louis Christopher, CEO

New data released by SQM Research today has revealed the national residential rental vacancy rate declined in February 2020 to 2.0% from 2.1% recorded in January, with the total number of vacancies Australia-wide now at 68,079 vacant residential properties.

Most states recorded minor declines in vacancy rates with the exception of Hobart which recorded a 0.3% increase. Adelaide remained stable at 1.0% vacancy rate.

Sydney has surpassed Darwin recording the highest vacancy rate in the country at 2.9%, having dropped 0.3% basis points. Darwin sits at 2.7% with a 0.5% drop on last month. Canberra’s vacancy rate has declined to 1.0% and Melbourne is now 1.9%.

The year on year comparison revealed a similar decline when the national rental vacancy rate in February 2019 was 2.2% compared to 2.0% recorded for February 2020. Only Melbourne, Canberra and Hobart recorded higher vacancy rates compared to this time last year.

February marks the start to the new year in the property industry and gives us a clearer picture of the rental market. The decline in vacancy rates is a reflection of a seasonal increase in rental demand plus ongoing decline in dwelling completions and the ongoing increase in population. We are likely to record further declines in rental vacancy rates as 2020 progresses unless the country enters into a prolonged economic depression.

Asking Rents

Over the month, Capital City asking rents decreased 1.2% for houses and 0.2% for units for the week ending 12 March 2020 to record asking rents of $562 per week for houses and $441 per week for units. In comparison over the 12 months, asking rents increased 0.4% for houses and remained steady for units.

Sydney, Melbourne, Adelaide and Canberra all recorded decreases in asking rents for both houses and units over the month. Perth was the only city to record rent increases for both houses and units, 0.1% for houses and 2.5% for units.

Over the month, Darwin and Hobart managed small increases for house rents of 1.2% and 0.5% respectively but unit rents has fallen by 2.4% for Darwin and 1.4% for Hobart.

Brisbane recorded decreases in house asking rents of 0.4% but unit asking rents remained stable.

Upcoming Auctions Listings

The SQM Research website is now providing listings of upcoming residential property auctions in all states.

Note: The auctions listed are preliminary and current at the time of publication. This list may well change during the week based on new listings or some properties may have sold prior, or are withdrawn or have been rescheduled. Please check the listing ad to ensure auction times have not changed.

DISTRESSED PROPERTY OF THE WEEK

3D Shearing Street, Oaklands Park SA 5046

click to enlarge

Built in 2010, this 2-storey, 3 bedroom Torrens Title home in the Adelaide suburb of Oaklands Park is for sale at $439,000 after initially being offered at $475,000.

The home is in a convenient location, approx. 14 km south from Adelaide CBD and is close to Oaklands train station and bus options, various local schools and recreational facilities are nearby, it is an easy 5 minute walk to Westfield Marion shopping centre and close to beaches.

The home sits on an approx. 150 sqm block with 3 bedrooms upstairs together with the main bathroom. Downstairs is the lounge area; a combined dining/kitchen with gas cooking and dishwasher; all with floating timber floors and reverse cycle ducted air-conditioning. Downstairs there is also an additional toilet, separate laundry area and an automatic, lock-up garage that has direct access into the home. Outside there is an established, private garden and rainwater storage tank.

Asking prices for houses in postcode 5046 have been increasing over the last few years where there has been a 3.1% increase over 3 years, a 5.2% increase over 12 months and a recent 0.5% increase over the month. Units in the area however have declined 24.2% over the 12 months and 1.1% over the month. The median asking price for houses in this postcode ranges from $450,000 to $545,000. The home would suit first home buyers, families and couples.

The Oaklands Park area has shown some exciting growth with the recent infrastructure development project, ‘Oaklands Smart Precinct’, which is an opportunity to use technology, community and business leadership to transform this area and neighbouring areas.

Investors note that the home is currently rented to December 2020 at $400 per week, plus water usage. Asking rents for houses in the area has declined 2.6% over the last month after a 4.4% increase over 12 months. The vacancy rate is a very tight 0.4%, declining from 1.0% in February 2019. The gross rental yield for houses is 4.1% and 5.1% for units.

For a more indepth look at the property market for 2020, subscribe to Christopher’s Boom and Bust Report 2020.

SQM website also 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.

Louis Christopher's 2020 Housing Boom & Bust Report has now been released and is available for $59.95!

The Housing Boom and Bust report is accurate, impartial and detailed. Best of all it is priced so that EVERYONE from real estate agents, financial planners to regular mums and dads can access it at just $59.95.

Key features of the 2020 Boom & Bust report include:

Louis Christopher's personal take on the markets
Capital city forecasts
Main drivers of demand and supply at present and going forward
All leading indicators such as stock on market, vacancy rates etc
All the possible scenarios that could play out next year
Nearly every city and regional postcode covered re: property stats plus ratings outlook

If you are a real estate professional or a serious residential property investor, you will not want to miss this report!

If you are interested in where the market is heading on a national level, then this is the report for you from one of the most accurate housing market forecaster in the country.

Click here to purchase now!

SQM RESEARCH HOUSING INDEXES

SQM Research Weekly Asking Prices Index
Week ending: 17 Mar 2020		Asking Price	Chg on prev week	Rolling month % chg	12 month % chg
Sydney	All Houses	1,375.5	3.5	1.0%	11.5%
Sydney	All Units	704.9	1.4	-0.6%	1.0%
Melbourne	All Houses	1,023.5	-3.0	1.6%	8.8%
Melbourne	All Units	556.8	-0.6	0.3%	1.1%
Brisbane	All Houses	656.9	1.9	1.5%	6.6%
Brisbane	All Units	371.4	-0.9	-0.4%	-1.1%
Perth	All Houses	655.0	3.1	0.7%	-1.2%
Perth	All Units	375.9	1.0	0.5%	-2.2%
Adelaide	All Houses	523.6	0.8	0.1%	1.5%
Adelaide	All Units	304.4	1.0	0.6%	1.2%
Canberra	All Houses	818.6	2.9	0.1%	0.5%
Canberra	All Units	442.2	-2.1	-0.2%	5.4%
Darwin	All Houses	568.5	1.9	0.4%	-2.7%
Darwin	All Units	320.1	-0.1	0.8%	-20.0%
Hobart	All Houses	575.8	6.1	3.0%	14.2%
Hobart	All Units	363.8	-7.7	0.9%	10.1%
National	All Houses	599.3	4.8	1.4%	6.2%
National	All Units	389.7	3.4	0.6%	4.0%
Cap City Average	All Houses	987.5	-2.9	1.1%	8.4%
Cap City Average	All Units	572.9	1.7	-0.1%	1.2%

Next update: 24 Mar 2020

SQM Research Weekly Rents Index
Week ending: 12 Mar 2020		Rent	Chg on prev week	Rolling month % chg	12 month % chg
Sydney	All Houses	702.0	-1.0	-0.8%	-0.7%
Sydney	All Units	500.4	-0.4	-0.3%	-1.3%
Melbourne	All Houses	550.8	-2.8	-0.5%	1.1%
Melbourne	All Units	422.6	-0.6	-0.2%	0.6%
Brisbane	All Houses	469.4	-1.4	-0.4%	2.7%
Brisbane	All Units	378.7	0.3	0.0%	2.1%
Perth	All Houses	447.8	0.2	0.1%	1.7%
Perth	All Units	344.6	3.4	2.5%	3.4%
Adelaide	All Houses	406.9	1.1	-0.1%	3.1%
Adelaide	All Units	308.7	1.3	-0.4%	2.1%
Canberra	All Houses	629.5	-1.5	-0.8%	-2.4%
Canberra	All Units	463.8	-0.8	-0.1%	1.9%
Darwin	All Houses	460.2	3.8	1.2%	-6.2%
Darwin	All Units	362.2	-2.2	-2.4%	-4.2%
Hobart	All Houses	453.8	3.2	0.5%	3.7%
Hobart	All Units	408.9	3.1	-1.4%	12.2%
National	All Houses	450.0	1.0	-0.2%	0.7%
National	All Units	365.0	-5.0	-1.6%	1.4%
Cap City Average	All Houses	562.0	-1.0	-1.2%	0.4%
Cap City Average	All Units	441.0	1.0	-0.2%	0.0%

Next update: 20 Mar 2020