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QLD Brisbane vacancy rates rise

Discussion in 'Where to Buy' started by bobbyj, 17th Jul, 2015.

  1. bobbyj

    bobbyj Well-Known Member

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  2. bobbyj

    bobbyj Well-Known Member

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    New data has revealed that vacancies are rising in Australia's third largest city.

    The number of vacancies in Brisbane has risen over the past month according to data released by SQM Research.

    The vacancy rate in Brisbane rose from 2.4 per cent in May 2015 based on 7,651 vacancies, to 2.5 per cent in June 2015, based on 8,044 vacancies.

    Canberra saw the highest percentage point increase in its vacancy rate month-on-month, jumping from 1.9 per cent in May 2015 based on 1,049 vacancies, to 2.2 per cent in June 2015 based on 1,195 vacancies.

    Perth also suffered with its vacancy rate jumping to the highest across the nation at 3.6 per cent, up from 3.4 per cent in May with vacancies increasing from 6,621 to 7,184.

    The rest of the capital city vacancy rates for June 2015 were unchanged from May.

    Hobart’s vacancy rate remained the tightest at 1.5 per cent with 397 vacancies.

    Sydney’s vacancy rate remained at 1.8 per cent with 10,753 vacancies.

    Adelaide remained tight as well with a vacancy rate of 1.9 per cent and 3,121 vacancies.

    Melbourne’s vacancy rate remained at 2.3 per cent with 10,909 vacancies.

    Darwin stayed steady on 3.5 per cent with 980 vacancies.

    The overall national vacancy rate was kept low at 2.4 per cent based on 72,849 vacancies.
     
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  3. Be Developer

    Be Developer Property Developer Business Member

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    @bobbyj

    Re; Brisbane

    It probably has more to do with renters are buying PPoR

    And

    Interstate migration to Sydney and Melbourne for better job opportunities.
     
  4. cashnow

    cashnow Active Member

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    Have a property in Brisbane been vacant for 2 months now.
     
  5. HUGH72

    HUGH72 Well-Known Member

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    What suburb is it in and why?
     
  6. cashnow

    cashnow Active Member

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    Morningside o_O
     
  7. York

    York Finance Broker Business Member

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    Is there any particular reason you think why it's vacant?

     
  8. wylie

    wylie Moderator Staff Member

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    We've just had nearly six week vacancy in Balmoral. We had to drop the rent drastically to get a tenant. I watched as other nearby houses sat empty with mine and as they lowered the rents too.

    We found a good tenant who after two weeks but they wanted to take it in four weeks from then. We agree to hold it for three weeks rather than risk losing them.

    This is not something I've seen many times but I believe it is due to so many renters being able to buy due to low interest rates, but that is just my guess.
     
  9. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    From being on the ground and talking to agents, lots of renters are becoming buyers due to affordability. That's also driving the lower end/entry level of some markets to move with gusto.

    But Brisbane also has a pretty good supply/demand balance (and too much supply in some areas e.g. CBD) so higher vacancy rates than say, Sydney, make sense.
     
  10. FirstTimeBuyer

    FirstTimeBuyer Well-Known Member

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    Hi @cashnow, @wylie, are your properties detached housings or attached?

    I'm thinking of buying in Brisbane at the moment and so the increased vacancy isn't the best sign for me.
     
  11. HUGH72

    HUGH72 Well-Known Member

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    I actually think its just a normal part of the cycle in a city where affordability is not stretched. For example a 450k property which isn't that far from the median with a 10% deposit, a 400k loan at an ordinary IR of 4.75 gives IO repayments of only 365 per week.
    Rent on a similar property would be 400pw or more.
    The argument whether to buy or rent for people in BN is clearer IMO and many tenants are doing just that.
    The houses in good inner middle ring suburbs are probably tenanted by families thinking that if they move slightly further out they can buy.
    Obviously a significant section of the market either don't wish to, don't have the deposit, are unsure about employment or may wish to rent for numerous reasons.
    I'll probably jinx myself but I haven't had any vacancies across a few different suburbs in BN, rents are flat but the vacancy rate is only 2.5%. 3% is considered a balanced market so nothing to be concerned about. I bet the vacancy rate will rise further in the coming year due to affordability and increased supply.
    Once prices rise affordability will decrease meaning more renters and the cycle continues.
    Increasing rates at some point will encourage more people to rent, sometimes we can't have our cake and eat it.
     
    Last edited: 19th Jul, 2015
  12. jaybean

    jaybean Well-Known Member

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    Yup. Once prices go too high in a few years we'll slowly move back to where we were. There will always be people who are forced on the sidelines or force themselves on the sidelines.
     
  13. wylie

    wylie Moderator Staff Member

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    Ours was three bedroom house. The agent we engaged to find us a tenant said it was worth $60 per week or more than the weekly rent we accepted. She was having issued with other houses where owners refused to budge on rent price, and they were sitting empty.

    Had we refused to wait three weeks for a good tenant, we risked losing even more. I've experienced this before, rents flat and having re-rent at same rent or drop the rent. It is part of the cycle.
     
  14. FirstTimeBuyer

    FirstTimeBuyer Well-Known Member

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    Thanks Wylie. I guess if that happens to us we may need to do the same.
     
  15. RPI

    RPI Property Lawyer, Town Planner Business Member

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    Rents had come back a bit of late from what I have seen. The rental next to me in Morningside has been vacant for 3 months. This is in the $800-$900/ week range.
     
  16. Ryper

    Ryper New Member

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    Didn't have any trouble in Deception Bay last week.
    Settled last Monday and accepted an application on Friday for 12 months at just over 6%.
    Happy days.
     
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  17. Whitecat

    Whitecat Well-Known Member

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    A PM I was talking to agrees with the former. The latter seems to be reflected in the bne subreddit. Not a lot of work

    *whoops I replied to the wrong post. The latter I was referring to was people leaving bne to get work
     
  18. Natedog

    Natedog Well-Known Member

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    We have properties in Redlands council area, no issues with vacancies or rents dropping, one had a $20 per week rise in Feb, another had a $10 increase in March.....both of them are properties below the median of thier respective suburbs. Another one if vacant today would be an easy $20 per week increase..."markets within markets" as usual.
     
  19. JDP1

    JDP1 Well-Known Member

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    Yeah, I'd second that. This is more true in brisbane than Melbourne or Sydney ie it's more enticing to buy rather than rent in brisbane vs syd or Mel because rents are high in brisbane whilst purchase prices are comparably lower...add low interest rates into that and it's an attractive proposition to buy.