Vacancy Rates for December

[black dragon]

Hi guys

Have put up December's figures on the websitew and did a public media release this time. http://www.sqmresearch.com.au

The numbers showed a dip from the month of November to December. However I am confident enough to say this is seasonal given that landlords tend to withdraw rental advertising in the lead up to the Xmas Holidays. That has certainly been the case in previous Decembers as the data illustrates.

December on December(07) the figures are quite conclusive. There has been an increase in vacancies just about everywhere. Some cities are still tight such as Hobart, Adelaide, Canberra and to a leser extent, Brisbane and Perth.

But in Sydney and Melbourne, things are loosening up; particuarly in the inner urban/affluent areas. Even so its still tight in the affordable areas of the

 

[ffc1883_1996]

From Enzo...

Each month the Real Estate Institute of Victoria Ltd (REIV) surveys member real estate agencies that manage rental properties across the metropolitan and major regional areas and has done so for many years.

The survey asks how many rental properties are on the agency’s rent roll and how many are currently vacant and available for immediate rent. The survey sample size is usually between 50,000 and 60,000 properties, which is about 15 per cent of the total number of rental properties in Melbourne. The REIV vacancy rate accurately measures the vacancy rate at any given point and, importantly, also measures the change in the vacancy from month to month.

Mr Christopher’s company, SQM Research, uses a completely different methodology.

SQM Research compares the number of rental properties advertised on internet property portals, with an estimate of the total housing stock available based on the ABS 2006 Census.

While this measure may give some indication of available rental at a given time, it incorrectly assumes that all properties advertised on the internet are currently vacant and available to rent immediately.

http://www.reiv.com.au/news/details.asp?NewsID=735

Interested in your thoughts, Mr. Christopher??

 

[black dragon]

Yes here is my reply (as below), which I have emailed in to Letters to the editor of the Age and will be posting up on sqmresearch later today.

I also note that the person looking after the letters to the editor informed me that Enzo's letter hadnt actually been submitted.


Letter to the Editor
The Age
Via Email: [email protected]

29 January 2009
Dear Editor

In his letter to the Editor dated 27 January 2000, Enzo Raimondo, CEO of the Real Estate Institute of Victoria (REIV) has omitted key components of SQM Research’s residential rental vacancy rate methodology. And worse, his acknowledgement of the REIV’s vacancy rate survey size should be a concern to the Victorian public.

Firstly, SQM’s methodology will not include online rental listings in its count unless it is advertised for 14 days or more. This is a key component of our methodology that is clearly published on the front page of our website, www.sqmresearch.com.au . And so, we do not assume that every property listed for rent is vacant as per the incorrect REIV claim.

Second, SQM Research takes into account rental property construction competed since the last census of 2006. It does this by using updated Australia Bureau of Statistics building approvals and construction data.

SQM Research is now also concerned by the sample size the REIV have admitted their vacancy rates are based on. A size of 15% of the total rental market is totally inadequate in our opinion and risks compositional distortion. For example it is not made clear what proportion of their sample size comes from outer Melbourne, where there are low vacancies compared to Inner Melbourne where vacancies are higher. And similarly, what proportion comes from the affordable areas of Melbourne verses the proportion that comes from the affluent areas.

As we note, SQM Research is recording high vacancy rates in parts of inner Melbourne and most affluent areas within Melbourne.
Further to this, it is not publicly known nor independently audited what agents actually fill out in their vacancy survey forms with the REIV. How does the public know agents are filling out these forms objectively?

Enzo’s misrepresentation of our methodology; his acknowledgement of the REIV sample size in their methodology, together with key public questions raised in recent months over the REIV’s reporting of auction clearance rates, should illustrate to the public at large that an independent source of complete property market statistics is urgently required for the state of Victoria.

I also respectively ask confirmation on whether Enzo Raimondo has actually submitted his letter to you as per currently represented on the REIV website.
Yours sincerely
Louis Christopher
Managing Director
SQM Research Pty Ltd
www.sqmresearch.com.au

 

[ILoveProperty]

Well said
Will the age publish?

 

[black dragon]

Cheers

No The Age didnt publish this on the grounds that Enzo never actually submitted his Letter to The Editor.

Really it goes a long way to show the calibre of the man running the REIV. He puts something on his website indicating it went to The Age..but it never was submitted.

I dont understand why the agents of Victoria continue to vote this man in for CEO.

The REIV could be so much more than what it is. It could be respected for a start. It has potentially a huge role to play in education of the industry. But instead many, including those within the industry have little to no respect for it. And thats because its actions tend to illustrate all that is bad.

Its a shame. I know plenty of good, honest and hard working agents in Victoria (and other states). Yet they continually get brought down by this mob.

Surely an institute with new leadership, focusing on the things it should focus on such as education and ethics is good for all?