Pete Wargent blogspot

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

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Sunday, 15 January 2017

Lights not on; no-one home...

Vacancies up in December

One should typically expect to see vacancy rates rise in December and January, and nationally vacancy rates were up to 2.8 per cent before Christmas according to SQM Research. 

The increase was largely driven by Brisbane, which jumped to 3.7 per cent.  

As these numbers aren't seasonally adjusted it's technically 'chart crime' to smooth them over a few months, but nevertheless this can help to give a sense of the trend. 

We expect to see seasonal spikes in vacancy rates in suburbs such as Indro, Toowong, and perhaps Milton, at least in part because there are fewer students around over the summer break. 

The tasty action is happening in the construction hubs such as the Valley and Newstead...

Source: SQM Research

And especially South Brisbane and West End, though the student effect is a part of this December jump too.

Source: SQM Research

The trend is not the landlord's friend in these areas, with several thousand more inner city apartment completions expected to come onstream before the end of June.