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National Vacancy Rates Declined Marginally in May
by Louis Christopher, CEO, SQM Research
Data released by SQM Research today has revealed the national residential rental vacancy rate declined marginally in May 2019 to 2.2%, a decrease from 2.3% in April. The total number of vacancies Australia-wide is now at 75,093 properties for rent, a decrease of 2,571 over the month but up 5,941 dwellings over the past 12 months.
Most states recorded minor declines ranging from 0.1% to 0.3%. Darwin and Sydney have the highest vacancy rates in the country, both at 3.3%. A 3.0% vacancy rate is what would normally be considered a balanced market. Darwin declined by 0.3% and Sydney’s decline was 0.1%. Perth’s vacancy rate is not far behind at 3.1%, having dropped 0.1%.
Hobart’s vacancy rate decreased from 0.6% to 0.5% in May and continues to record the lowest vacancy rate in the country.
The month of May recorded a marginal change in rental vacancies, overall. However the standouts for me were the falls in vacancy rates for Brisbane and Perth. I think the rental market is decidedly turning in favour for landlords in these two cities. Both cities also recorded fairly strong increases in asking rents for the month. Indeed, Perth is now recording a 6% rise in asking rents for houses over the past 12 months. With no expected material increase in new dwellings, I believe the rental market will continue to tighten from here for the two cities.
Asking Rents
Capital city asking rents decreased by 0.2% for both units and for houses for the week ending 12 June 2019 to record asking rents of $553 per week for houses and $441 per week for units. In comparison, over the 12 months, asking rents for houses increased 0.4% but declined 0.7% for units.
Sydney’s asking rent for units and houses have both continued to decline marginally by 0.1% for houses and 0.5% for units to 12 June. Over 12 months, the decline has been 3.6% for house rents and 3.8% for units.
Adelaide, Darwin and Hobart were the only states to experience increases in weekly rents for both houses and units. Adelaide’s house rents increased 1.0% and units by 1.8%, Darwin’s house rents increased by 3.0% (the highest among all states) and units increased by 0.1%. Hobart’s house rents increased 1.9% and units increased by 3.7% (the highest among all states).
DISTRESSED PROPERTY OF THE WEEK
27 Minti St, Maroochydore Qld 4558
This distressed property could be a good opportunity to secure a home in Maroochydore in Queensland’s Sunshine Coast. The home at 27 Minti Street has 3 bedrooms, 2 bathrooms plus 2 living areas and sits on a 531 sqm block, and is for sale at $590,000. It has been on sale since December 2018 at an initial price of “offers over $600,000”. It last sold 10 years ago for $480,000 in 2009.
This home also includes a swimming pool with timber gazebo, large front yard with a secure fence and a huge Media/Pool room leading out to the backyard pool area. There is also a large upstairs deck providing great outdoor living all year around.
Inside there is a kitchen with plenty of cupboard space, timber floors throughout the top floor and tiled ground floors. The master bedroom also has a walk-in robe and a spa ensuite. The house has 3 split system air-conditioners, covering both upstairs and downstairs.
It is a move-in ready family home or you can rent it and hold for the future. Currently, weekly rents for houses range from $511 to $527 in postcode 4558. Weekly Asking Rents increased marginally by 2.1% over the quarter, however there has been a decline of 2.6% over the month. Gross Rental Yield is 4.56% for houses and vacancy rates for the area sits at a low 1.9%.
Asking Prices for houses in the area increased 20.5% over the last 3 years but has declined 3.0% over the month.
The home is approx. 200 m from the Maroochy River and within a short walk to Bradman Avenue Picnic Point and Chambers Island, where you will find fishing, water sports, cafes and the sandy beaches of the Maroochydore River. It is also only a short drive to the newly developed Maroochydore CBD and under 7kms to the Sunshine Coast Airport.
The area is currently undergoing one of south-east Queensland’s largest urban regeneration projects. The vision is for a vibrant hub of commerce, technology, innovation, entertainment and inner-city living and will include prime commercial office space, convention and exhibition facilities, premium hotel, public plazas and new waterways and parks.
With the arrival of the new infrastructure, analysts project the Sunshine Coast’s population to grow from 346,522 to 500,000 by 2036. Over recent years the Sunshine Coast has reported to have attracted billions of dollars in public and private investment, making the regional economy one of the strongest in the state. The Sunshine Coast Council has estimated up to 2 million more passengers would be flying into the region by 2040 once the region's expanded airport was operational by 2020.
“Maroochydore’s new city centre will cement the Sunshine Coast as one of Queensland’s, and Australia’s, best-performing regional economies.” - QLD Premier, Annastacia Palaszczuk
Now could be the time to secure a home and enjoy the fantastic lifestyle in a premier Sunshine Coast position. Monitor this market and other areas by accessing free property data at SQM’s website. Also consider the Property Valuation product for more in-depth data and property price estimator.
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