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CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Wednesday, 18 November 2015

Vacancies

Vacancy rates mixed bag

SQM Research released its latest vacancies and asking rents figures up to October 2015, which showed vacancy rates steady across much of the east coast but rising in the resources capitals. 

Reported vacancy rates were steady in Brisbane (2.6 per cent) and Adelaide (1.9 per cent), while Canberra (2.1 per cent) saw a slight decline.

The vacancy rate in Sydney declined to 1.6 per cent, which has been reflected in moderately rising asking rents for houses (+1.9 per cent) and units (+3.1 per cent) over the year, although the rents figures may mask divergent trends at the sub-regional level.

While both Melbourne (2.4 per cent) and Hobart (1.1 per cent) saw vacancy rates ticking up in October, over the past year both have recorded declines, and as such asking rents have been rising solidly in these cities too. 


Resources woes

On the other hand vacancy rates rose further still in Perth (3.8 per cent) and Darwin (3.5 per cent).

Asking rents for houses in Darwin have tanked by more than 20 per cent over the past year according to SQM, with Darwin set for a significant price correction.

Asking rents are down for houses in Perth too (-6.4 per cent), albeit by a less dramatic margin. 

Perth has reportedly seen the price of premium property fall sharply this year, although prices at the bottom end of the market have not shifted too much to date. 

Perth will become an attractive buyers' market again in time, but most data - including the iron ore price which was walloped by another 4.5 per cent overnight to be down by a stonking 76 per cent since 2011 and 36 per cent this calendar year alone - suggests that this time is not yet upon us!