Five of the 10 regions with the lowest rental vacancy rates in Australia last year were in Tata, three in Canberra, one in northern Queensland and one in the north, according to a new survey by Australian real estate research firm SQM Research. Low vacancy rates are good news for investors, but industry sources say investors still need to consider a number of factors in different regions.
According to the online new daily (New Daily), data exclusively provided to them by SQM Research shows where the vacancy rate was the lowest last year.
The rental vacancy rate is expressed as a percentage, showing the percentage of housing available for a given period of time in an area.
Typically, the vacancy rate of 3 percent is considered to be the equilibrium between supply and demand in the rental market, and none of Australia`s 10 regions with the lowest vacancy rate is more than 1 percent. According to data, the lowest vacancy rate for rental homes is West Hobart, vacancy rate of 0.1122% in Tasmania.
As house prices fall across Australia, investors are turning their sights to profitable parts of the country. While house prices are a temptation for investors, the vacancy rate is also a key factor to consider.
However, Anna Porter, owner of Suburbanite real estate consultancy, said that while it is not easy for Tasmanian tenants to rent a house, it is not necessarily a motivational factor for investors.
Although the vacancy rate is low, the base is not strong because the market has attracted too many interstate investors rather than locals in the past few years, so the vacancy rate will rise sharply, she said.
For Canberra, the reason behind Porter`s low vacancy rate is significantly different from that of Tasmania.
She knows that Canberra still has a lot of transitional jobs, a lot of short-and medium-term jobs, and a lack of housing in the rental market.
"there is a shortage of housing, and we heard that on the day of the sale advertisement, there was a local agent who called to ask if the house would be rented," she said. "because Canberra`s land tax is higher than other states," she said. This is not an attractive market for investors. But many investors do not realize whether competition can make up for the land tax. So I think investors need to pay more attention to this issue. "
Peter Koulizos, chairman of the Australian Real Estate Investment Association (PIPA), said the vacancy rate was just one of the many factors investors should take into account when buying property. In addition, a number of economic factors need to be considered, including the prospects for capital growth, the strength and diversity of the local economy, the supply and demand relationships between buyers and tenants, the possible negative impact of new construction on the market, and cash flows.
For tenants, Greg Bader, director of the rental site rent.com.au, said tenants looking for housing in hot areas should pay more attention to neighboring areas.
"look at why you want that particular area, and then see if there are any adjacent areas that offer similar options," he said.
He suggested that tenants looking for housing should take the time to consider their options, whether to walk or to consider transportation. Or do you want to make it easier for single people to hang out?
"moving is a big problem, trouble and money, so it`s a good idea to spend a little time understanding," he said.
