What is Really Happening Around The States??

Your as mad as a cut snake. I can't listen to anything else you say now.

 

Vacancy rates from SQM

 

Wow, Perth seems to be getting worse, and Hobart tracking a very low vacancy rate. Brisbane has climbed but not as much as I thought it would for this period. Still, a lot of looming supply for Brisbane coming.

 

With our latest two lease renewals, both in Brisbane and both in the last month, we have been able to increase the weekly rent.

So much better than previous renewals where we had to leave the rent unchanged. In one case, in the end, we had to drop the rent by $20pw just to get the property rented.

I was expecting to see the vacancy rate drop somewhat.

 

What area were your last 2 renewals? I've been able to obtain small increases in Carina and Sunnybank and Redbank Plains.
I think in Carina it was a case of the property appealing to an extended family and there aren't that many similar places for rent.

Everton Park I will be increasing the rent also, only slightly as the tenants are a dream but it is currently a little under market rent.

 

Both are 4 bed, 2 bath houses. One was in Wynnum West, the other Coopers Plains. Both are long term, good tenants but we always seek to get market rent

 

Seriously, m

Melb market is just incredible..... with so many supplies coming in, vacancy rate still stays down low at 2%!

 

more people moving that way?

 

I agree its a brilliant market, for buying and renting, its a perfect storm, highest immigration, low interest rates, and economy doing well, still affordable housing market.. ... this State has many service based industries and its chugging along nicely.

Even though the market started booming in 2013 the fundamentals make this still a very attractive long term proposition. Find something where you can add value down the track and it should be a nice little earner, but do your own research on this one.

MTR

 

Update on Melb and Syd markets - still strong, in part due to drop of interest rate.
Go you beautiful thing.....

Article attached.

Auction Stats Reveal Spike in Melbourne Buying Activity
By Jason Staggers


The number of auctions held across the capital cities this week increased to 2,113, and the preliminary clearance rate notched up to 76.6 percent. A higher number of listings is normal in the lead up to the spring months, but volume remains low compared to the same time last year, when 2,654 auctions were held. Last week’s final results showed 75.2 percent of 1,795 auctions clearing successfully.

The Stats

Sydney’s clearance rate remains strong in the 80s, but fell over three basis points to 81.0 percent. Last week’s final result of 84.3 percent was the city’s record for the year so far. Volume ticked up to 762 auctions, compared to 687 last week and 1,106 over the same weekend last year.

Melbourne buyers picked up Sydney’s slack this week, with a preliminary clearance rate of 79.0 percent. Last week’s final result was 75.4 percent. Melbourne’s strength is especially pronounced given the increase in volume from 789 last week to 1,046 this week. Nonetheless, seller activity remains subdued compared to one year ago, when 1,188 homes were auctioned.

The Graph





The Analysis

In previous weeks, clearance rates were high because the number of properties listed was exceptionally low. That remains the case to some degree in Sydney, but Melbourne saw a significant boost in demand this week relative to supply.

Sydney’s volume increased, but the clearance rate decreased. Looking deeper at the maths, last week there were 579 successful bidders, compared to 617 this week. There were not nearly enough new buyers to absorb the additional supply, so the clearance rate fell.

In Melbourne, volume increased a lot, but so did the clearance rate. Again, diving into the numbers, last week there were 595 successful bidders, compared to 826 this week. That’s 231 more buyers, or an increase of nearly 40 percent from last week!



As you can see in CoreLogic’s graph above, auction clearance rates are now trending up with authority. Expect the combined capital city clearance rate to be higher again next week, especially considering there is a lower level of supply expected for the coming weekend.

What It Means For Investors

After the recent RBA rate cut and without any word yet from APRA about tightening bank capital requirements, the availability of cheap credit is driving demand for real estate higher. In the near term, expect Melbourne and Sydney to remain very competitive markets for buyers. If you’re hunting for a renovation or subdivision deal, expect a battle to sign a contract that delivers your profit margin.

 

How many auctions were in Tasmania?

 

Brisbane has done pretty much as id have expected it to.
Done well and certainly more of the same or perhaps a bit faster for the remainder of this cycle. Unless Brisbane has a solid rise of high paying non mining jobs, you will not see Sydney style conditions.
Or....unless I hype it hard..yes then you might see aggressive growth in asset prices.

 

ok, I am still waiting, I am hoping perhaps 2017 will be the boom Brisbane

 

There seems to be plenty of jobs available at the moment.
Will be interesting to see how many people cross the border in the next 12-24mths.
NSW debt will be something to watch.

 

Clearly they are all going to Melbourne

 

Not all of them, I made it back up here

 

lol