looks like the fall out from decreased investor supply is starting to bite:
Higher rents on the way
Author: Fiona Tyndall
Date: 13/04/2005
Words: 299
Source: AFR
Publication: The Financial Review
Section: News
Page: 8
It is bad news for renters, but it could be good news for investors the number of properties available for lease in most cities is falling and it is prompting rent rises.
After a year of low returns from property investment, vacancies are low in Sydney, Melbourne, Perth, Adelaide, Brisbane and the Gold Coast, and agents have increased rents or expect to soon.
In Sydney, the rental market is so tight that the Real Estate Institute of NSW has warned of an "accommodation crisis", with the number of properties available for rent dropping to the lowest level since the Sydney Olympics in 2000.
With fewer owner-occupiers buying homes and fewer investors adding to the rental stock, Sydney's vacancy rate in March was 2.2 per cent.
"For every available property to rent, REI member agents are reporting up to 10 individuals or groups applying for tenancy," REI NSW president Rowen Kelly said. "A year ago the average would have been two or three applications."
But landlords are not complaining. David Hill, of Raine & Horne Crows Nest, manages 700 rental properties and usually has 20 to show on any given day. In the last six weeks he only had six.
"We now have three potential tenants for each property and they are prepared to pay full price. Last year it was one tenant and they wanted a 10 per cent discount," Mr Hill said.
In Brisbane, the December quarter vacancy rate was 2.6 per cent, down from 3.1 per cent, and for the Gold Coast housing market it was 2.7 per cent, down from 2.9 per cent.
In Melbourne, the CBD vacancy rate fell to 2.6 per cent in February, down from 3.9 per cent in January. But rents have not increased there yet.
Higher rents on the way
Author: Fiona Tyndall
Date: 13/04/2005
Words: 299
Source: AFR
Publication: The Financial Review
Section: News
Page: 8
It is bad news for renters, but it could be good news for investors the number of properties available for lease in most cities is falling and it is prompting rent rises.
After a year of low returns from property investment, vacancies are low in Sydney, Melbourne, Perth, Adelaide, Brisbane and the Gold Coast, and agents have increased rents or expect to soon.
In Sydney, the rental market is so tight that the Real Estate Institute of NSW has warned of an "accommodation crisis", with the number of properties available for rent dropping to the lowest level since the Sydney Olympics in 2000.
With fewer owner-occupiers buying homes and fewer investors adding to the rental stock, Sydney's vacancy rate in March was 2.2 per cent.
"For every available property to rent, REI member agents are reporting up to 10 individuals or groups applying for tenancy," REI NSW president Rowen Kelly said. "A year ago the average would have been two or three applications."
But landlords are not complaining. David Hill, of Raine & Horne Crows Nest, manages 700 rental properties and usually has 20 to show on any given day. In the last six weeks he only had six.
"We now have three potential tenants for each property and they are prepared to pay full price. Last year it was one tenant and they wanted a 10 per cent discount," Mr Hill said.
In Brisbane, the December quarter vacancy rate was 2.6 per cent, down from 3.1 per cent, and for the Gold Coast housing market it was 2.7 per cent, down from 2.9 per cent.
In Melbourne, the CBD vacancy rate fell to 2.6 per cent in February, down from 3.9 per cent in January. But rents have not increased there yet.
