March residential vacancy numbers have been released by SQM Research for our core service areas.
Botany 1.8%
Alexandria 2.2%
Mascot 2.5%
Zetland / Waterloo 1.2%
Rosebery / Eastlakes 1.1%
The most notable reduction is in Mascot.
Our area continues to be a hot spot for property purchasers. Off plan purchases are going strong with Myplace selling 80% of 1 – 9 William Street Alexandria on the official launch day 18th April 2015. Mirvac’s new project at Green Square OVO has been selling 1 bedroom apartments from $700,000 which is an indication of where prices are going in the area.
All prospective investors should keep a close eye on the vacancy rate and especially the average for the area they are considering purchasing in. In some areas, mainly regional mining areas, investors have been caught out because the vacancy rate has gone through the roof and property values have plummeted.
I find, if you ask a local Property Manager, with no vested interest in your personal purchase, what they are experiencing in regard to local rental demand, it will provide a good indication of the market. Property Managers are at the coal face of the rental market and accountable to their landlords if they fail to let a property. They perfectly understand the balance between rental demand and rental price from the level of enquiries being received. Consequently, they know when rental prices can be elevated or reduced.
Vacancy Rate Guide:
Below 2% is considered a tight rental market and termed a landlords market
3% is the balance point between tenants and landlords
Over 3% is considered a tenants market