Vacancy

<html><body>
EXPERT OBSERVER
The spectre of Australia’s vacancy tax is about to become real for Chinese residential property owners, with penalties of up to $52,500 looming for those who miss the deadline. 
One year after the Federal Government introduced vacancy tax rules, the first returns are starting to become due – and up to 15,000 foreign investors will be expected to provide evidence as to whether their property sat vacant in the last year.
Foreign owners of Australian residential property face a minimum vacancy tax of $5,200, and even occupied properties could incur a $52,500 penalty if the owner fails to meet the deadline to lodge a return declaring occupancy of their assets with the Australian Taxation Office (ATO).
Further, if they fail to keep the necessary records to prove occupation, they could be hit with an additional penalty of $52,500. And even then, the owner would still be liable to pay the vacancy fee. For a property worth upwards of $4 million, that could equate to combined penalties and fees of more than $150,000 —even if the property has been occupied throughout.
The annual vacancy tax rules are the latest in a series of imposts on foreign buyers, designed to reduce the impact of foreign ownership on housing affordability, particularly in the core property markets of Sydney and Melbourne.
While the ‘ghost tax’ is intended as a financial incentive for foreign owners to make their dwelling available for rent and increase available housing in Australia, it raises the question of whether Chinese buyers might be scared away by the long-term implication of the new rules.
Foreign owners must lodge a vacancy tax return every year, keep records for at least five years after selling, keep evidence regarding who is using their property, and manage the risk of significant financial penalties if they fail to do so.
The immediate challenge facing foreign owners who have bought a residential property since May 2017 is identifying when they will need to submit their vacancy review, and how they will go about proving whether the property was vacant or not.
While the burden of this new tax on Chinese buyers is hauntingly clear, the impact on foreign sales in the Australian residential market is not.
Chinese buyers remain Australia’s biggest investors in real estate but according to statistics published in the Foreign Investment Review Board’s (FIRB) 2016-17 Annual Report, the size of their investment more than halved from AUD$31.5 billion in 2015-16 to AUD$15.2 billion in 2016-17.
Overall FIRB real estate approvals plunged from 40,149 in 2015-16, to 13,198 last year. But there have been a number of factors that may have contributed to this reduction, including the introduction of FIRB application fees, tighter Chinese capital controls and weaker Australian property market conditions.
For Chinese buyers, the residential property market continues to become more hostile in Australia and while it hasn’t yet reached New Zealand levels - where foreign buyers have been banned altogether - the latest changes are likely to have a chilling effect for many looking to purchase property.
Denise Honey is a partner at tax consulting firm Pitcher Partners.
</body></html>

jrobinson-rf4aSBido9

The potential impact of Australia's new vacancy tax rules on foreign ownership

<html><body>
It appears that investors may still be struggling in Perth, with Real Estate Institute of Western Australia (REIWA) figures showing a slowdown in sales and a lift in the rental vacancy rate.
REIWA president, David Airey, said that the median house price has increased from $546,000 in the December quarter to $550,000 in March, however this $4,000 lift is unlikely to do much to improve the concerns of investors in the state.
“There was little change in overall sales turnover for the quarter, down by only 2%, however, it’s noteworthy that the March quarter was down by about 6% on the same period last year,” Airey said.
Noting it had been a ‘choppy’ quarter for sales, he said there had been a steady decline in recent weeks as more properties were put on the market for sale.
The biggest slide was seen in the City of Vincent, south east segments of the City of Stirling and Gosnells and Melville areas.
Across Perth, and areas such as Fremantle, Rockingham and northern Joondalup, sales have, in fact, been lifting. Despite this, listings rise and are now at their highest level since December 2012.
This may mean a good time to get in for prospective home buyers, with more choice, however it does make selling prospects somewhat lacklustre.
Similarly, landlords won’t be too impressed with the most recent vacancy rate statistics – with the highest vacancy rate seen in the past four years. It has now lifted to 4.1% for the rate for the three months to February. The last time it was higher was the winter of 2010’s 4.3%.
“It’s now a tenants’ market with much more stock available and median rent coming down a little. It has dropped $15 per week in the last nine months and I anticipate a further fall in the median weekly rent to show up in the data over the next few weeks,” Airey said, pointing to around 5,000 rental properties on the market.
This is an incredible 56% up on the same time last year.
“The March quarter normally experiences a tightening in the vacancy rate, but not so this year,” Airey said.
The biggest jump in rental listings was in Joondalup and Wanneroo, up 26% on December.
He said the absence of first home buyers is being felt with the increase in selling stock on market, with 10,067 homes on the market – a rise of 861 properties from a month ago and 1,600 from a year ago.
“For several quarters the number of listings hovered around 8,500 properties but now seem to be trending back to a more usual 12,000,” he said.
“The biggest jump in listings was experienced through parts of the cities of Joondalup and Wanneroo which saw 28% more stock up for sale”.
Do you have a vacant property in Perth? Tell us what you are experiencing: <a href="mailto:jduke@propertyobserver.com.au" target="_blank">jduke@propertyobserver.com.au</a>
</body></html>

jduke-EHk3XBmHkn

Perth vacancies highest in years, rentals on market 56% up on 2013

<html><body>
The Brisbane office market is facing a perfect storm.
A sobering report by forecaster BIS Shrapnel is predicting the sunshine state to be hit with an oversupply of stock for the next decade, along with a vacancy rate set to reach 18% plus in 2016.
The city's looming oversupply woes was just one of the topics examined in the Brisbane office market report. It looked at the strength of leasing and investor demand, all of which pointed to a challenging few years for the market.
Not mincing it's words, BIS Shrapnel said: "there’s a perception that further oversupply in the Brisbane CBD office market may be averted by withdrawing secondary buildings for conversion to residential or short term accommodation uses".
"While there are perhaps a handful of suitable candidates, it will be a case of too little too late."
The report warned that because of that oversupply pressure, rents and property values will take a hit. 
<img src="/images/2014/04/29/chart-of-the-week-april-29.-breakout.jpg" alt="">
Author of the report, Christian Schilling, said there were three towers currently under way in the CBD that would add another 186,000 square metres of new space before the end of 2016, equal to 9% of current stock. 
In contrast, withdrawals for conversion or re- development expected over the same time horizon, he noted,  sum to just 72,000 square metres, or 120,000 square metres to the end of 2017.
"On balance, that is still one tower too many", he said. "And this is on top of weak demand and a vacancy rate of 14.2% at January this year".
Among some of the buildings slated as withdrawals in the report were 80 Albert Street,plus a number of buildings to be vacated by the state government over the next three and a half years, which include Health House, 80 George Street, the Executive Building, the Executive Annex, Neville Bonner Building and Forestry House. The Primary Industries Building was also flagged as a potential withdrawal for redevelopment, along with some odd small buildings for conversion to residential or short term accommodation. 
Against this backdrop, BIS Shrapnel is also forecasting demand to be weak in the near, with the CBD expected to suffer "a triple hit in the form of the Government’s release of surplus space, tenants leaving for the fringe, and falling mining investment".
The forecaster estimates that since 2012, cuts to the public service and it's accommodation have resulted in 120,000 square metres of surplus space in the CBD, plus a further 20 square metres in the fringe, all of which the government intends to release as lease expire.
It is forecasting another 70,000 square metres of space to be released in the CBD over the next 3 years.
Compounding the situation, it notes is the space vacated by BOQ, Ventyx, Flight Centre and Robert Bird Group, all of which are leaving the CBD for the fringe, resulting in more than 40,000 square metres of vacated space.
Also constraining demand, it added, was the downturn in mining investment.
“I don’t want to talk the market down, but it’s simple maths”, said Schilling. “Unless mining investment takes off again, which is highly unlikely to happen over the next three years, vacancy rates will blow out to over 18% in 2016.”
As such, he believes, the Brisbane office market would represent a very challenging environment for building owners, developers and investors.
"Anyone contemplating investing in Brisbane in the short term should think carefully about the potential consequences, as the market weakness is likely to persist for the rest of this decade”, Mr Schilling warned. 
Photo courtesy of <a class="owner-name truncate" href="https://www.flickr.com/photos/burningimage/" target="_blank" title="Go to Nam Nguyen's photostream" data-track="attributionNameClick" data-rapid_p="21">Nam Nguyen</a>/Flickr.
</body></html>

kjiminez-eaYKfU7qd2

Oversupply and vacancy rate creating a perfect storm for Brisbane office market

<html><body>
The Real Estate Institute of New South Wales has warned that vacancy rates in Sydney are now at a crisis low levels, with the number of properties for rent dropping 0.3% to 1.4% in the March 2014 Vacancy Rate Survey.
This is a figure not seen broadly since November 2011, according to REINSW president Malcolm Gunning.
“Sydney is going backwards in regard to properties available for rent. Something must be done to ensure that there is a greater level of choice for those seeking to secure a rental property in Australia’s biggest city,” said Gunning.
Inner Sydney vacancy rates declined by 0.2%, to 1.3%, while the middle and outer suburbs dropped 0.4% and 0.1% to 1.6% and 1.5% respectively.
Again, it appears all eyes are on new Premier, Mike Baird, as to how property will be treated.
“We look with interest to the direction new Premier Mike Baird will take in regard to property. His support is essential to ensure that the best and brightest remain in NSW. This can only happen if he identifies the inequities of the current planning system as well as lack of affordable housing and incentives for first home buyers,” Gunning continued.
<a href="https://www.urban.com.au/property-observer" target="_blank">Newcastle</a>, however, increased by 0.1%, to 2.5%, while the Hunter also stayed relatively flat with a 0.1% decrease to 3.1%. <a href="https://www.urban.com.au/property-observer" target="_blank">Wollongong</a> was up 0.7% to 2.3%, with the whole of the Illawarra then placed at 2.1% up from 1.7%.
The Mid-North Coast’s vacancy rate was recorded as the lowest outside Sydney metro, at 1.4%, a 0.3% tightening, while <a href="https://www.urban.com.au/property-observer" target="_blank">Coffs Harbour</a> has the highest availability at 3.8%, up from 3%.
</body></html>

Investor alert: Sydney vacancy rates at "crisis levels"

<html><body>
Demand
Some time ago I went for dinner for a friend's birthday at a restaurant in Surry Hills and when the conversation got on to real estate, as it does in Sydney all too often, the lass sitting next to me who had only recently moved to Sydney (living in the inner west) said: 
"You know, I can't see property prices falling around here - there's just so much demand for property and not enough of it".
I had to laugh inwardly to myself, as I wondered how someone who'd been looking for an apartment since moving to the harbour city for all of about three weeks had been able to grasp what plenty of economists - and for that matter property market commentators - never venture to get a handle on. 
That is, how tight Sydney's property market is in those popular suburbs where the supply is all but fixed. As it transpired, she was correct, with prices in the inner west rising relentlessly since that time and vacancy rates remaining wretchedly tight.
<blockquote>
In the right Sydney suburbs where supply is fixed, vacancy rates are as close to zero as we're ever likely to see.
</blockquote>
It just goes to show how a little bit of legwork can give you a genuine feel for what's happening in suburbs at a micro level, to add to what is being reported on a macro level.
Crash risks 
An oversupply of property is <a href="https://petewargent.blogspot.com.au/2014/04/crash-risks" target="_blank">one of the factors</a> which heightens the risk of a property crash, and in 2003 it appeared that Sydney might be a particularly risky proposition.
Not only had dwelling prices boomed, the rate of population growth was falling sharply (in part due to interstate migration) and vacancy rates jumped to 4.3% in the harbour city and some 5.3% in the outer ring suburbs according to the REIA.
As prices cooled, construction of dwellings dropped sharply as one would expect in a typical market cycle.
In fact, construction levels fell to such woeful levels by 2008/9 that the crash predictions being peddled at that time didn't appear to make much sense unless, of course, you believed that unemployment would increase very sharply, which in the event, it didn't - with some skill and a bit of luck.
Of course, demand for investment properties will ebb and flow with sentiment and the interest rate cycle, but ultimately in a city with a rapidly growing population if construction doesn't keep pace with requirements (which will likely happen where prices are easing) eventually this will come home to roost in the guise of a tightening market until upwards pressure on prices eventually returns.
<div>
<img src="https://2.bp.blogspot.com/-RmQ0LdgPD0o/U05gmU7bKOI/AAAAAAAAMl8/vFSYWuDiy7I/s400/ckusherrrr.jpg"> 
</div>
Source: RP Data
Those who work in the industry tell me that large developers are still genuinely struggling to break even on large scale unit developments even at today's higher prices - and this is indeed being borne out in the relatively slender net profit margins being reported by residential developers on the securities exchange.
Based upon that information, it strikes me that short of grants, concessions or other incentives being made available to developers, a drawn out fall in prices would see dwelling approvals and subsequently construction dry up once again.
This is why it is so important to understand replacement cost when reading the property market cycle.
The Reserve Bank itself gave a pretty handy rundown <a href="https://www.rba.gov.au/speeches/2013/sp-so-230413" target="_blank">here</a>.
<div><img src="https://www.rba.gov.au/speeches/2013/images/sp-so-230413-graph8.gif" width="400" height="386"></div>
The above figures for infill sites relate to multistorey apartment blocks and give a useful indicator as to replacement cost of property in Sydney.
As a very general rule of thumb, when apartment prices fall below replacement cost...au revoir construction.
On the flip side, median house prices in Sydney long ago became decoupled from any kind of sensible price/income ratio, and as such are marching to their own drum and may be more prone to a correction.
Crisis looms? 
And so, here we are today.
The REINSW reported this afternoon that March 2014 vacancy rates in Sydney had fallen to near crisis levels falling by 0.3% to only 1.4%.
<div class="separator"><a href="https://2.bp.blogspot.com/-aXekV3_smeQ/U18L1yj0aUI/AAAAAAAAM0w/qe7FZlwm4sU/s1600/REINSW.jpg"><img src="https://2.bp.blogspot.com/-aXekV3_smeQ/U18L1yj0aUI/AAAAAAAAM0w/qe7FZlwm4sU/s1600/REINSW.jpg"></a></div>
Reported the REINSW: “Sydney is going backwards in regard to properties available for rent. Something must be done to ensure that there is a greater level of choice for those seeking to secure a rental property in Australia’s biggest city."
In Sydney's inner 10 kilometre ring, vacancy levels have fallen to desperately low levels of only 1.3%, which would come as no surprise whatsoever to anyone who ventures to actually look at what's happening in the market.
A vacancy rate of 1.3% across such a dense property market is described by the REINSW as"verging on crisis levels".
There are some question marks over whether the new stock which is sold offshore is being let or left empty, but to date, with humble apologies, I have no worthwhile data to present on that. 
That may be one to look into.
Elsewhere in the state, of course, demand is significantly lower since most of the speculation is taking place in Sydney's favourably located suburbs and vacancy rates are correspondingly considerably higher.
<div>
Construction picking up
As prices have picked up, so too is now construction in Sydney, and over the coming years vacancy rates will likely eventually rise again, but the rates of vacancy likely to be significantly higher in areas where large new developments are taking place (cf. what has reportedly played out in Melbourne in recent years).
Naturally anyone buying property in Sydney today needs to be extremely wary of buying in a suburb or sector of the market which will soon be inundated with a deluge of new apartments, and that's most particularly the case for persons buying expensive off-the-plan or high rise stock.
In the right suburbs where supply is fixed, it's pretty much as you were with vacancy rates as close to zero as we're ever likely to see.
You can visit <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) or Pete's <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blog</a>.
His new book '<a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>' is out now.
</div>
</body></html>

pwargent-M4siyDbqQY

Is the Sydney vacancy rate really verging on "crisis levels"?

<html><body>
“Vacancy” is not a good word for any investor looking to keep a stable cash flow and a decent tenant, and yet it seems many areas are facing rents decreasing in the capital cities, according to SQM Research, with Canberra and Perth suffering the most.
Similarly, Perth has recently had a tough run with tenants breaking leases and vacancy rates increasing - late last year, in fact, Property Observer reported that <a href="/news/25907-news-perth-landlords-lower-rents-to-dissuade-potential-buyers" target="_blank">Perth landlords were lowering rents to dissuade tenants from leaving</a>.
<blockquote>
52% of Gen Y said they’d like to live in the inner suburbs.
</blockquote>
Realestate.com.au have released the top 10 suburbs searched online for apartment rentals over the past six months (September 2013 to February 2014) based on their internal statistics.
The top 10 list:
<ol>
<li>Brisbane (QLD) 4.7% vacancy rate (SQM Research) Daniel Argent from Urban Property in Brisbane says that the rental demand for inner Brisbane apartments is increasing.“There is definitely a high level of rental demand for inner city apartments. There are a lot of people looking for two-bedroom apartments that are close to shopping and transport. With such high demand we find that most of the properties are tenanted within two weeks of listing,” said Argent. </li>
<li>Canberra (ACT) 2.5% vacancy rate (SQM Research) </li>
<li>Perth (WA) 5.7% vacancy rate (SQM Research) <a href="https://www.realestate.com.au/property-apartment-wa-perth-412854299" target="_blank">This two bedroom, two bathroom apartment</a> is currently available to rent in Perth. Sitting on the border of East Perth and Perth, it’s available at $750 a week. </li>
<li>Melbourne (VIC) 6.2% vacancy rate (SQM Research) </li>
<li>Docklands (VIC) 5.8% vacancy rate (SQM Research) A renter could lease an apartment in <a href="https://www.realestate.com.au/property-apartment-vic-docklands-412777379" target="_blank">this Docklands complex at $400 a week</a>. Unfurnished studio apartments at Victoria Point are leasing from $315 per week. Docklands' difficult conception and towering cranes previously saw Property Observer take a deeper look at the area, expected to have attracted $17.5 billion by 2025 in private sector investment, in this <a href="/news/vic/26766-oct-11-news-docklands" target="_blank">suburb spotlight</a>. </li>
<li>Southbank (VIC) 2.3% vacancy rate (SQM Research) An unfurnished <a href="https://www.realestate.com.au/property-apartment-vic-southbank-412778263" target="_blank">one bedroom apartment in the Victoria Tower</a> will set a renter back at least $405 per week. Shared facilities include a gym, tennis court, spa, sauna and pool. </li>
<li>Braddon (ACT) 1.5% vacancy rate (SQM Research) This <a href="https://www.realestate.com.au/property-townhouse-act-braddon-412841911" target="_blank">three bedroom, two bathroom townhouse in Braddon</a> is significantly more affordable, at $670 per week. </li>
<li>Nathan (QLD) 3.3% vacancy rate (SQM Research) </li>
<li>Parramatta (NSW) 2% vacancy rate (SQM Research) The booming Sydney "second CBD" suburb of Parramatta is currently seeing <a href="/expert-insights/buying/28926-v-by-crown-parramatta-slab-set-today" target="_blank">the tallest residential tower in the area, V by Crown</a>, under construction. The impressive development may just underpin the longevity of the area. </li>
<li>Chatswood (NSW) 2.8% vacancy rate (SQM Research) <a href="https://www.realestate.com.au/property-unit-nsw-chatswood-412715351" target="_blank">T</a><a href="https://www.realestate.com.au/property-unit-nsw-chatswood-412715351" target="_blank">his freshly painted and two bedder</a> in Sydney’s Chatswood is available for $525 per week. </li>
</ol>
For more data, including median prices and rents on each of these areas, you can <a href="finding/location/suburb-data" target="_blank">use our free suburb data pages</a>. 
 
Interestingly, as noted above, the vacancy rates are still high on a number of these areas - and SQM Research's Louis Christopher has since tweeted Property Observer that he has put out warnings to investors on a number of these suburbs. Docklands and Southbank, in particular, have long had a <a href="/expert-insights/buying/20927-tuesday-feb-19-flicker-terry-ryder" target="_blank">reputation of an apartment market oversupply</a>.
The number of tenants and sharers seeking apartments rather than other types of property, both established and new, is up to 39% of the market – an increase of 7% since 2012, according to the realestate.com.au figures.
<blockquote>
The number of tenants and sharers seeking apartments is now at 39% of the market.
</blockquote>
Tenants under the age of 35, earning between $50,000 and $99,000 are those driving this trend. Within this, 52% of Gen Y said they’d like to live in the inner suburbs.
While only 6% of Gen Y tenants nominated regional suburbs as their ideal location, 15% of baby boomers preferred regional suburbs, in their 2014 Consumer Insights Report on Tenants and Sharers.
Of all tenants, 72% of Gen Y said they’d take care of the property like it was their own, with 84% of Baby Boomers citing the same. Six in 10 tenants have said they spent money to make improvements to a rental property.
The general manager of sales and operations at realestate.com.au, Arthur Charlaftis, said that the key for tenants is research and knowing the key statistics about the area, as well as the amenities and lifestyle available.
<a href="mailto:jduke@propertyobserver.com.au" target="_blank">jduke@propertyobserver.com.au</a>
</body></html>

Where do tenants want to rent? The top 10 suburbs where renters are searching for apartments

<html><body>
New figures from SQM Research have seen vacancy rates jumping across the country, to see the national figure hit 2.3%, compared to 2.0%.
It’s the highest vacancy rate recorded for April since the inception of SQM’s index, in 2005,  and SQM's head of research Louis Christopher expects that for some areas this could be about to get worse.
<img src="/images/2014/05/19/vacancy%20may%2019%20one.png" alt="">
As can be seen in the table above, increases were seen across all states and territories in April 2014, compared to March 2014. When compared to the corresponding month in 2013, the story is somewhat more mixed.
Adelaide is down 0.1% since April 2013, and the market is also tighter in Hobart and Melbourne.
Perth and Canberra “are clearly looking sick” Christopher explained to Property Observer, “and I would say Darwin is going to follow suit.”
Melbourne, he noted, is bouncing back after two tight months previously.
“Nevertheless [it’s] more than just coincidence as our asking rents also recording a stagnant rental market,” he said.
National asking rents have remained flat, and over the past 12 months to May the capital city increase for units was just 1.7%, while dropping back 1.5% for houses.
“As we predicted this time last year, rental growth is slowing to the point where we are recording a flat rental market and in some instances significant rental falls as is the case with Perth and Canberra. With the national recovery in building approvals and completions, I can only surmise that the rental market is increasingly going to favour tenants over the next 12 months. And so rental yields for potential property investors will look even less attractive from their current low levels,” Christopher said.
Despite this, the Real Estate Institute of New South Wales’ vacancy rate statistics have seen pressure remain on Sydney’s market, as well as Wollongong, Albury and the Northern Rivers.
However, they also recorded a vacancy rate rise – bringing the number of properties for rent up 0.3% across Sydney, explained REINSW president Malcolm Gunning.
“Inner Sydney vacancy rates remain the tightest, despite an increase of 0.3% to 1.6%. In middle Sydney availability rose 0.4% at 2.0% and outer Sydney was up 0.2% at 1.7%,” said Gunning.
Inner city LGAs include Ashfield, Botany Bay, Lane Cove, Leichhardt, Marrickville, Mosman, North Sydney, Randwick, Sydney, Waverley and Woollahra.
Middle Sydney LGAs includes Auburn, Bankstown, Burwood, Canterbury, Canada Bay, Hunters Hill, Hurstville, Kogarah, Ku-ring-gai, Manly, Parramatta, Rockdale, Ryde, Strathfield and Willoughby.
And outer Sydney includes Baulkham Hills, Blacktown, Blue Mountains, Camden, Campbelltown, Fairfield, Gosford, Hawkesbury, Holroyd, Hornsby, Liverpool, Penrith, Pittwater, Sutherland, Warringah, Wollondilly and Wyong.
Wollongong vacancy rates are now at lows that were last seen three years ago, said Gunning.
“Wollongong is an attractive proposition for those who wish to relocate from Sydney. Its beachside location is a more affordable option for those who are seeking a more relaxed lifestyle and this is putting pressure on the number of properties available,” he said.
Meanwhile, vacancy rates dropped 0.5% in Albury and the Northern Rivers, while Newcastle’s increased by 0.5%.
</body></html>

Highest national vacancy rate for April ever recorded: SQM Research's Louis Christopher

<html><body>
New SQM Research vacancy rate figures have seen increases in the vacancy rate nationally, with the only capital recording a decrease being Hobart.
This is the highest result recorded since December 2013.
<a href="https://www.sqmresearch.com.au/" target="_blank">SQM Research</a>’s managing director Louis Christopher said that while this isn’t a “rout” for investors quite yet, it does paint a picture of rents unexpected to rise above inflation over the next 12 months.
“At this stage the market is increasingly favouring tenants across the country,” said Christopher.
“This means that rental yields will continue to fall, thereby reducing the net cash flows for new property investors in the market place.”
Nationally, vacancies are recorded at 2.3% in May or 69,258 nationally.
Melbourne, whose vacancy rate is the highest of the capital cities, sits at 2.7%, while Darwin, Hobart and Adelaide have the tightest vacancy rates – at 1.6%.
Perth recorded the highest year increase – up 0.9% to 2.5%. Sydney recorded a 1.9% vacancy rate.
See over page for the summary table of vacancy rates and their latest changes.
<hr class="system-pagebreak">
Latest recorded vacancy rates
Click to open in new window: 
<a href="/images/2014/07/17/sqm%20july%2019%20one.png" target="_blank"><img src="/images/2014/07/17/sqm%20july%2019%20one.png" alt=""></a>
Source: SQM Research
</body></html>

Property investors to see net cash flow fall: SQM Research

<html><body>
Vacancy rate changes are becoming notable within New South Wales and Sydney, and the the June 2014 Real Estate Institute of New South Wales (REINSW) Vacancy Rate Survey has noted what is occurring across the state.
REINSW president Malcolm Gunning noted that rates above 2% are considered neutral, and that some areas will be seeing an increase in vacancy rate as new rental accommodation is constructed.
Here are 10 locations in New South Wales notable in the survey.
<ul>
<li>ALBURY</li>
</ul>
Current vacancy rate: 1.1%
The vacancy rate has dropped by 0.5%, and this is down to levels that the REINSW notes they last saw in March 2003 where they dropped to 0.7%.
“Albury is a vibrant regional centre with lots of activity. It is growing and has solid employment opportunities. Less incentives for first homebuyers see people in the area renting for longer or those from metropolitan areas moving to enjoy a tree-change,” Gunning said.
<ul>
<li>ILLAWARRA</li>
</ul>
Current vacancy rate: 1.8%
The Illawarra’s vacancy rate has tightened by 0.1%.
<ul>
<li>WOLLONGONG</li>
</ul>
Current vacancy rate: 2.1%
This is a decrease of 0.3%.
<ul>
<li>HUNTER</li>
</ul>
Current vacancy rate: 3.3%
The area had a drop of 0.1%, led by a 0.4% decrease in Newcastle, to 3.5%.
<ul>
<li>CENTRAL WEST</li>
</ul>
Current vacancy rate: 4.4%
The area is down 0.3%.
<ul>
<li>RIVERINA</li>
</ul>
Current vacancy rate: 3.6%
The area is up 0.3%.
<ul>
<li>COFFS HARBOUR</li>
</ul>
Current vacancy rate: 3.6%
Coffs Harbour is up 0.2%.
See over page for Sydney metro (inner, middle and outer) vacancy rate details.
<hr class="system-pagebreak">
SYDNEY METRO:
Current vacancy rate overall: 1.8%
Across Sydney, the residential vacancy rates were notably unchanged on the whole – with opportunities for those looking for rentals.
Across Sydney’s entirety, the rate dropped 0.1%.
<ul>
<li>INNER</li>
</ul>
Current vacancy rate: 1.9%
<ul>
<li>MIDDLE</li>
</ul>
Current vacancy rate: 2.1% (biggest mover with a 0.4% drop)
<ul>
<li>OUTER</li>
</ul>
Current vacancy rate: 1.5%
</body></html>

Vacancy rates to know: 10 New South Wales locations

<html><body>
An area's vacancy rate is an important detail, helping you shape your initial picture of the area.
Changes and trends in the vacancy rate and how it compares to other areas will help you consider whether that suburb is the best decision for you. If you're unsure about how to use this figure, start with our quick explainer about <a href="/expert-insights/35714-what-is-a-vacancy-rate-investment-terms-explained" target="_blank">what a vacancy rate is and what it measures</a>. High vacancy rates can be caused by a number of things, like a surge in stock.
Property Observer looked to SQM Research's statistics to see where, across Victoria, the vacancy rates are highest. To see vacancy rates for a specific suburb, you can see <a href="https://sqmresearch.com.au/graph_median_rent_weeks.php?region=nsw%3A%3ASydney&amp;type=c&amp;t=1" target="_blank">SQM Research's free data online</a>.
Here are ten to know from the list.
<ol>
<li>
<a href="https://www.urban.com.au/property-observer" target="_blank">Southbank</a> 8.3% 
</li>
<li>
<a href="https://www.urban.com.au/property-observer" target="_blank">St Leonards</a> 6.4% 
</li>
<li>
<a href="https://www.urban.com.au/property-observer" target="_blank"> Docklands</a> 5.5% 
</li>
<li>
<a href="https://www.urban.com.au/property-observer" target="_blank">Melbourne (city)</a> 5.1% 
</li>
<li>
<a href="https://www.urban.com.au/property-observer" target="_blank">Travancore</a> 5.0% 
</li>
<li>
<a href="https://www.urban.com.au/property-observer" target="_blank">St Kilda</a> 3.9% 
</li>
<li>
<a href="https://www.urban.com.au/property-observer" target="_blank">Parkville</a> 3.7% 
</li>
<li>
<a href="https://www.urban.com.au/property-observer" target="_blank">South Yarra</a> 3.6% 
</li>
<li>
<a href="https://www.urban.com.au/property-observer" target="_blank">Elwood</a> 3.1% 
</li>
<li>
<a href="https://www.urban.com.au/property-observer" target="_blank">Connewarre</a> 2.9%</li>
</ol>
YOU MIGHT ALSO WANT TO READ
<a href="/expert-insights/buying/28512-mining-town-vacancy-rates-mean-that-its-wise-to-wait-and-watch" target="_blank">Mining town vacancy rates mean that it's wise to wait and watch: Terry Ryder</a>
<a href="/news/nsw/35571-which-new-south-wales-region-has-the-lowest-vacancy-rate-and-it-s-not-sydney" target="_blank">Which New South Wales region has the lowest vacancy rate? (And it's not Sydney)</a>
Note: Some of these numbers have been amended from initial publishing due to data updates
</body></html>

Vacancy

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Vacancy

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News