Rents Falling!
- Thread starter JIT
- Start date
I am referring to black dragon's vacancy figures:
http://www.somersoft.com/forums/showthread.php?t=49035
If vacancy rates are in fact increasing eg. in Melb/Syd, are people seeing this in their own IP areas?
I am seeing a plateuing of rental values, albeit after 18 mths of crazy increases in my IP areas in Melbourne.
http://www.somersoft.com/forums/showthread.php?t=49035
If vacancy rates are in fact increasing eg. in Melb/Syd, are people seeing this in their own IP areas?
I am seeing a plateuing of rental values, albeit after 18 mths of crazy increases in my IP areas in Melbourne.
I have increased 2 rents recently but only by $20 and $30pw.
However this article came through my inbox recently:
http://www.theaustralian.news.com.au/story/0,,24950557-25658,00.html?from=public_rss
January 23, 2009
THE inner suburbs of Sydney and Melbourne have experienced a surge in rental vacancy rates as tenants seek cheaper accommodation further from the city, heralding the end of the blue-chip rental crisis.
According to analyst SQM Research, the number of vacant properties in Sydney's affluent eastern suburbs more than doubled to 4300 in the year to December.
In inner Melbourne, there were 2243 properties available for rent, up from 1400 a year earlier.
"The upper end of the rental market, getting towards the luxury end, it's a highly discretionary, sensitive end of the marketplace," said SQM Research managing director Louis Christopher.
"If you know times are hard and you're worried about your job, chances are you will opt for cheaper rent. People are opting for a $600-a-week rent now, rather than, say, $1000 a week -- it's as simple as that."
Because of that shift, the more affordable outer suburbs of the southern capitals, while recording a slight increase in rental vacancies, remained extremely tight.
In Melbourne's most affluent suburb, Toorak, vacancies rose from 5 per cent to 7 per cent in the year to December, while in inner-city Caulfield East, the vacancy rate ballooned from 5.5 per cent to 9.9 per cent.
The vacancy rates of outer suburbs Springvale and Kilsyth were 0.6 per cent and 0.4 per cent respectively.
In Bankstown and Liverpool in Sydney's west, vacancy rates were 2per cent and 1.4 per cent respectively.
By contrast, the vacancy rate in Sydney's prestige Vaucluse was 11.4per cent.
In Sydney's CBD, the vacancy rate was 6.6 per cent -- up from 2per cent in December 2007.
Mr Christopher said the vacancies had increased in all capital cities in the year to December, but the rises outside the southern capitals were limited.
The number of vacant homes in Perth rose from 0.8 per cent to 1.4per cent, while Brisbane's vacancy rate rose from 1.4 per cent to 1.8 per cent.
Mr Christopher said the net increase in national vacancy rates had been driven by developers who had released swaths of apartments on to the rental market, which they had been unable to sell.
To a lesser extent, unsuccessful home sellers were forced to rent out properties, he said.
Australian Navy sailor Jonathan Connell, 26, and his partner, Kasia Skorza, a 27-year-old nurse, are moving from a $480 studio loft apartment at Crows Nest on Sydney's north shore to a $420 two-bedroom unit in Marrickville, in the inner west, next Tuesday.
While the couple will miss the short walk to Crows Nest's restaurant strip, their new home will be closer to Ms Skorza's workplace, the Royal Prince Alfred Hospital, and will allow them to put savings in the bank.
After 18 months on the north shore, Ms Skorza said she was looking forward to leaving.
"It's not suitable for our lifestyle," she said. "I can't sleep during the day (when working night shift) because being a studio loft, there is nothing to block the noise and it is too bright."
The couple had not been directly affected by the global financial crisis, but the savings would help their prospects of buying a home in the years ahead.
I spoke to my Agent in Cairns who advises there are many vacancies and rents are decreasing to attract tenants.
This of course is the bad time of year in Cairns, with torrential rain, lack of tourists, Qantas reducing flights. This creates unemployment and with it the population decreases as the interstaters move back home, thereby decreasing the demand on the rental accommodation. Add to this the large number of apartments having been built in the City over a short period, and it stands to reason rents will decrease.
To date it has not affected the selling prices but not a lot are selling, I have been watching RE and the same houses and units are still appearing.
Its all part of the cycle, we have to just accept it and wait for it to improve. In a few months the rain will stop, the tourists will return and hopefully so will the renters.
Chris
This of course is the bad time of year in Cairns, with torrential rain, lack of tourists, Qantas reducing flights. This creates unemployment and with it the population decreases as the interstaters move back home, thereby decreasing the demand on the rental accommodation. Add to this the large number of apartments having been built in the City over a short period, and it stands to reason rents will decrease.
To date it has not affected the selling prices but not a lot are selling, I have been watching RE and the same houses and units are still appearing.
Its all part of the cycle, we have to just accept it and wait for it to improve. In a few months the rain will stop, the tourists will return and hopefully so will the renters.
Chris
My rents in Hobart and Launceston are still moving up although not but a lot ($5 to $25). No real vacancy as such but with middle level properties hardest to rent. (eg $260 for 1 bedroom apartment)
Still letting fine below $200pw and above $400pm. Not exactly sure what that means. Maybe more are sharing or staying at home.
I keep expecting to find it harder to let up upper end fully furnished but they are holding up so far.....
Still letting fine below $200pw and above $400pm. Not exactly sure what that means. Maybe more are sharing or staying at home.
I keep expecting to find it harder to let up upper end fully furnished but they are holding up so far.....
rents dropping
Dear Anna,
In the eastern suburbs of Sydney the rents are definitely dropping. We are now paying $600 per week for a home we are very happy with, and it's much nicer and newer than the one we left which was $750 per week. The $750 per week has not been able to find a new tenant yet, it's been empty for a while now as they are refusing to lower the rent. The same for units. I know people who left the area about 12 months ago who are returning. One bedroom units are about $50-$60 per week less than 6 months ago. I have been told by someone looking at the moment (just asked him to answer your question). Hope this helps you!
Dear Anna,
In the eastern suburbs of Sydney the rents are definitely dropping. We are now paying $600 per week for a home we are very happy with, and it's much nicer and newer than the one we left which was $750 per week. The $750 per week has not been able to find a new tenant yet, it's been empty for a while now as they are refusing to lower the rent. The same for units. I know people who left the area about 12 months ago who are returning. One bedroom units are about $50-$60 per week less than 6 months ago. I have been told by someone looking at the moment (just asked him to answer your question). Hope this helps you!
Hi Eastside,
Can I ask why (aside from the blatantly obvious, ie. cheaper rent) you chose to move? The reason for my question is simple, chances are if there was work that needed to be done on (as you say an older) property, and if possibly this maintenance hasn't been or has been insufficiently addressed, that is attributing to the delay in securing new tenants for your previous landlord/lady.
I'm not saying that rents are not on their way down over your way (they may well be) but I think there is more at play here that just rental decline. It seems surprisingly unusual for vacancy rates and declining rents to occur simultaneously. Not an impossible, but certainly an uncommon occurance.
rents
Hello there,
The fact is that the rental market in the eastern suburbs in Sydney has dropped, and it is fairly challenging to rent out a 2 bed house for $750 if in the same suburb (and same street) you can get a 3 bed house with a garage for $650. The landlord is unwilling to accept that the rental market is changing (the agent even told me that, because we asked for the rent to be dropped before we moved out). I dropped the rent on one of my IP's on Sydney's north shore to get a tenant in about 2 months ago. So I do think the rents are dropping but others may think differently.
Hello there,
The fact is that the rental market in the eastern suburbs in Sydney has dropped, and it is fairly challenging to rent out a 2 bed house for $750 if in the same suburb (and same street) you can get a 3 bed house with a garage for $650. The landlord is unwilling to accept that the rental market is changing (the agent even told me that, because we asked for the rent to be dropped before we moved out). I dropped the rent on one of my IP's on Sydney's north shore to get a tenant in about 2 months ago. So I do think the rents are dropping but others may think differently.
depends on the markets some are easing some are not, i am still increasing some of the rents as i have not been over the top with rents,however on the pulse. i see some may still rise. i predict we will see some rentals easing in lower mrkets where FHB are buying up and the pressure taken off rents. (however this is causing capital increases in the short term....) so i guess you cant sustain the both....
I've noticed FF apartments in inner city Brisbane are taking longer to rent out.. though rents are not necessarily coming down.
Reasons I can see why are;
1 This is a very niche market
2 Too many landlords trying to overcapitalising on January - The month that gets the highest rent/
3 Gen Y kids are being more careful with their money as employment drop.
Reasons I can see why are;
1 This is a very niche market
2 Too many landlords trying to overcapitalising on January - The month that gets the highest rent/
3 Gen Y kids are being more careful with their money as employment drop.
All valid reasons, albeit no.2 seems a bit sad, as a landlady I've always thought it to be in "poor form" to up the rent in January (especially as Christmas is generally a recovery time for most people).
Nevertheless, I still DON'T GET IT.....
Why/what reason would a landlord/lady/person have to drop the rent if rental demand continues to be high and consequently supply low????Or am I simply missing something (a vital clue perhaps) here.....???
Maybe it's a Northern equation, and dumba** Southerners like me just don't get it!!!
Does anyone have any idea what a mining slowdown will do to rents. Sure these high paid miners will have to find work with lower pay but i guess there mining accomodation will just be boarded up or there will be less miners per house. This means to me that there will be miners returning to either Perth or the east coast. This will put a little pressure on available rentals but i imagine it will not be huge. I myself know of 4 guys in my circle of friends who are returning to my coastal area of the shoalhaven. They will be renting and they know of more returning over the next few months. This is from just one mine. Our available rentals where at around .6% last time i checked and prices were steady.
All valid reasons, albeit no.2 seems a bit sad, as a landlady I've always thought it to be in "poor form" to up the rent in January (especially as Christmas is generally a recovery time for most people).
Nevertheless, I still DON'T GET IT.....
Or am I simply missing something (a vital clue perhaps) here.....???
Maybe it's a Northern equation, and dumba** Southerners like me just don't get it!!!
Monopoly
Perhaps as FF they are more holiday lets? I know my FF can rent at a premium over the summer. To new tennats not the exisitng ones.
