Distressed Property of the Week
4/6 Hickory Street, Nightcliff NT 0810
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The vendor is accepting offers from $420,000 on this 2-bedroom apartment, located in Nightcliff. The property last sold in October 2013 for $490,000 and the vendor is hoping the reduced price will attract either an owner-occupier or landlord for a quick sale.
According to Bilal Tariq and Nida Bilal from Real Estate, the modern 2-bedroom apartment is conveniently located close to the beach and all amenities provided along the foreshore. The home is fully furnished and features two balconies, a storeroom, an internal laundry and two car spots.
If you think it is a good deal, make sure you crunch the numbers first. On a first look, they look good. In postcode 810 the vacancy rate has decreased over the last 12 months from 1.3% in July 2020 to 0.6% in June 2021. Asking rents have have gained 24.8% over the last 12 months to 11 July. The gross rental yield is currently 5.9%. Overall, this paints a positive picture for future investors with such strong rental growth.
Asking prices for 2-bedroom units over the last 12 months have increased by 30.1%. A similar sized apartment on the same street, sold for $370,000 in December 2020. Given these figures, it would pay to do more research on the pricing of this apartment and investigate if there is room for a greater discount. You can view sales records for postcode 810 here.
You can monitor this market and others with SQM Research’s free property data. Also consider the SQM Property Explorer product for more in-depth data and property price estimator.
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National Rental Vacancy Rates Tighten to 10-yr low
Rents Surge in Capital Cities
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SQM Research today has revealed the national residential rental vacancy rate fell to 1.7% over the month of June 2021 from 1.8% in May. This represents the lowest vacancy rate at the national level since May 2011. Vacancy rates continue to fall for Sydney, Melbourne, Adelaide and Hobart, while some regional locations recorded a moderate rise in vacancies.
The total number of vacancies Australia-wide now stands at 60,457 residential properties, down from 62,144 in May. Melbourne’s vacancy rate fell to 3.5% in June from 3.7% in May, while in Sydney vacancy rates dropped to 2.8% from 2.9%. In Adelaide, Canberra and Hobart, the vacancy rate remained below 1.0%, while Perth, Brisbane and Darwin’s rate remained constant. Darwin has been positively affected by Covid-19, as low vacancy rates continue to boost rents. Vacancy rates fell again in the Sydney CBD and Melbourne CBD to 5.6% and 5.8%, respectively, representing a return towards more-longer term levels.
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Louis Christopher, Managing Director of SQM Research said: "Rental vacancy rates have fallen in our largest capital cities. Meanwhile there was some further evidence that we have reached the high point in regional occupancy and some relief for local renters may be coming later this year, notwithstanding Sydney’s latest lockdown. Rents are now accelerating in our larger capital cities which may have ramifications for the CPI read in the coming quarters.”
Asking Rents
Over the month to 12 July 2021, capital city average asking rents rose 1.8% for houses to $575 per week and rose 1.7% for units to $419. Over the year, capital city rents rose 7.7% for houses. However units are still recording falls of 0.5%. Outside the capital cities, rents for houses have recorded stunning increases over the year, with Brisbane up by 10.4%, Perth up by 13.7% and Canberra up by 16.4%. Nationally, rents rose 15.1% for houses over the year and 6.6% for units. Again, that growth has been fuelled by strong rises in rents in regional locations where there is a shortage of rental accommodation.
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Auction Results
for week ending 11 July 2021
Full individual auction results can be found on our website:
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Auction Listings*
for week ending 18 July 2021
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* The above counts of auctions represent most recent known auction dates for the coming week.
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Real Estate Realities
Victoria's Top Spots For An Affordable Lifestyle Revealed
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Victorian house hunters have been fleeing the city for an affordable lifestyle in regional and country areas, including Shepperton and Latrobe Valley. These two family friendly area's have benefited from the growing trend and will continue to be in high demand while the median house prices between $220,000 and $500,000.
According to Mr Ryder "the move out of city areas and to regional hubs was the “biggest single influence” on Australian real estate this century." This move was already occurring over the past years but has been highly accelerated by the pandemic.
Property owners are now able to purchase a home that has the same lifestyle and standard for half the price in a regional area. This allows the owner to reduce their mortgage by half or leaves them with leftover money. As the vacancy rate is currently less than 1%, the market allows for investors to purchase property as well and owner occupiers.
Keith Williams Traralgon real estate agent James Hourigan said that "property prices were soaring, with houses selling in a number of days, you can buy a very decent, very liveable home for less than $400,000.” Other regional towns, such as Ballarat, Bendigo and Albury/Wodonga have recently been added to the "B list of regional hot spots to watch" due to growth and low house prices. Mr Ryder "also predicted Gippsland and surrounds to be among the next areas to benefit from a boom in popularity."
More ...
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Black Dragon's Words for the Week
"The way to get started is to quit talking and begin doing"
~ Walt Disney
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SQM Research Housing Indexes
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SQM Research Weekly Rents Index
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SQM Ratings Newsletter ☆☆☆☆☆
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