bendigo vacancy rate may have hit 6%

[abbyfresh]

Just got off the phone to my property manager and they tell me the vacancy rate has hit 6%.

Is this true, and what are peoples thoughts about this?

Apparently the influx of new stock in Ascot area has caused a major surplus.

Lots of investors are taking a bit of a hit on their rents now.

 

[A Jeremy]

While high or increasing vacancy rates are never a good thing, people need to make sure they learn from this, regardless of whether or not they own property in the area - incorporate a nice big buffer into your feasibility study.

 

[SamL]

I have a property there which definitely took longer to rent than I would have liked and had to drop the rent $20 a week from asking price. It seemed strange though, I was there doing some basic clean up work during a couple of inspections and people would come through and say it is so competitive out there and they keep missing out and they liked the place but wouldn't end up putting an application in. There does seem to be a fair bit of rental stock about. My agent was saying they can rent all the new stuff out in the new subdivisions pretty quickly and this is having an effect on the market for existing stock sitting there for longer. The number of available tenants in a place like Bendigo doesn't really grow just because new house are being put up.

 

[DavidMc]

SQMresearch.com.au says the vacancy rate for 3550 is only 3.4%?

http://sqmresearch.com.au/graph_vacancy.php?postcode=3550&t=1

 

[SamL]

SQMresearch.com.au says the vacancy rate for 3550 is only 3.4%?

http://sqmresearch.com.au/graph_vacancy.php?postcode=3550&t=1

Need to also include 3555, 3551, 3556 being regional. But still the statistics show it lower than what it feels like on the ground. Definitely been running an upward trend though for the past 2 years.

 

[lizzie]

In a small-ish town a new subdivision opening up can make a huge difference.

We have a rental in regional NSW (council region pop 25k) ... a new, low cost, estate of around 150 houses caused rents in the area to drop around $100/wk due to oversupply and many renters buying.

 

[Property Hoarde]

I had no problems, my Bendigo property was up for lease in March.

I think there was 2 opens and I had someone signed up.

No increase in rent but no decrease either.

I did allow their pets which might have helped.

 

[Nash13]

In a small-ish town a new subdivision opening up can make a huge difference.

We have a rental in regional NSW (council region pop 25k) ... a new, low cost, estate of around 150 houses caused rents in the area to drop around $100/wk due to oversupply and many renters buying.

Don't think this scenario is applicable to Bendigo - 110,000 population, projected to add another 35,000 by 2031 - don't think a couple of estates in Ascot will make a huge dint to rental prospects...

 

[MelbInvester]

Nice to read this one.

http://www.bendigo.vic.gov.au/Resid...jects/Residential_Development_Strategy_Review

 

[MelbInvester]

Look this my Post

http://somersoft.com/forums/showpost.php?p=1163969&postcount=21

 

[Blueberry]

I'm more worried about Bendigo health building the 120? Unit accommodation and the selling off of their existing stock. And the other inner city unit developments.

However I see it as a blip.

As to Bendigo expanding, there isn't much room to expand. It is surrounded by national park. Can only really sprawl in a couple of directions, and there is a limit to that.

 

[Blueberry]

Did you call around the other agencies. I did in the latter half of last year and everything was roses. Has it really changed that much or is it your agency?

 

[abbyfresh]

Does this equate to a high vacancy rate?

http://www.realestate.com.au/rent/p...ist-1?numBaths=2&maxBeds=3&source=refinements

4 pages of choice in the 3 bed 2 bath category. Is that normal? or fantastic choice for renters.

 

[DaveM]

My bendigo place was leased today after much delay with reno post trashing. New PM got it sorted.

40 people at open house, multiple applications submitted. Price it realstically and it will rent.

 

[SamL]

Great news DaveM.

 

[jackbak]

Does this equate to a high vacancy rate?

http://www.realestate.com.au/rent/p...ist-1?numBaths=2&maxBeds=3&source=refinements

4 pages of choice in the 3 bed 2 bath category. Is that normal? or fantastic choice for renters.

You're searching an entire city there! You need to compare it to population size - 4 pages alone does not mean a thing. Narrow it down and do some more research and you'll get a better idea of vacancy rates.

 

[AHwee]

vacancy rate of Bendigo 6%

There is no real statistics yet. But I think vacancy rate of houses in bendigo has increased over the past few months. My 3 bedroom house there, after 5 rounds of rent dropping and now 3 months since putting up to market, is still empty.

To worsen matters, there seems to be more and more houses up for rental coming up to the market. Prices of properties for sale seems to have dropped too - too many to choose now.

Not good news for bendigo investing.

 

[TMNT]

There is no real statistics yet. But I think vacancy rate of houses in bendigo has increased over the past few months. My 3 bedroom house there, after 5 rounds of rent dropping and now 3 months since putting up to market, is still empty.

To worsen matters, there seems to be more and more houses up for rental coming up to the market. Prices of properties for sale seems to have dropped too - too many to choose now.

Not good news for bendigo investing.

whats the reason for this increase in vacancy?

demand, supply, economical, seasonal?

 

[DaveM]

A chunk of it is the new hospital and the new workers accomodation that was built to go with it absorbing a lot of rental demand.