Asking Rents Are Set To Surge | Kanebridge News
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Asking Rents Are Set To Surge

As vacancy rates plummet, rents could go up 15%.

By Terry Christodoulou
Tue, Mar 15, 2022Grey Clock 2 min

A lack of available rentals which has seen vacancy rates plummet to a new 16-year low, may see asking rents surge by as much as 15% nationwide this year according to research by SQM.

Available stock dropped from 1.3% January to 1.2% of total rentals in February – the lowest since December 2006 when the vacancy rate hit 1.1%.

All markets were now in rental undersupply after vacancy rates fell below the 3% threshold for a balanced market and the imbalance had pushed asking rents to 9.4% nationally over the year to March 12.

This was the sharpest rise in five decades and spelled bad news for those hit by inflation according to SQM managing director, Louis Christopher.

“Because the rental market is seriously stretched right now, we could see rents rising by at least 10% nationwide over 2022,” Mr Christopher said.

Housing costs account for approximately 23% of the CPI basket and steep rent rises had major ramifications for inflation.

Mr Christopher added that vacancy rates are likely to fall again over March.

“The first week recorded yet another decline in rental accommodation listings, and the impacts of the flood have not yet been reflected in the data, so we can expect rental vacancy to tighten again,” he said.

Across the country, every city aside from Sydney and Melbourne posted less than 1% vacancy rate last month, while Sydney’s vacancy dropped to 2% and Melbourne’s to 2.3%.

Further, the vacancy rates for apartments in the CBD fell sharply during February, coinciding with the return of international students.

The proportion of rental apartment in the Sydney CBD left vacant dropped to 4.3% from 4.5% in January while Melbourne saw its CBD vacancy rates drop 1.2% to 2.8%.

Brisbane faired similarly with the vacancy rate falling 1.4% to 4.4% and Adelaide was down by 1% to 1.7%.

 

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By Robyn Willis
Fri, Aug 19, 2022 < 1 min

Treechangers seeking a home and income should take note of this west coast property in picturesque Pickering Brook in the Perth Hills, which comes with its own live-in residents.

Known as ‘the Margaret River of the Hills’ the area boasts stunning bushland while being just 30 minutes from all the amenity Perth has to offer.

With eight bedrooms and 10 bathrooms, this property is a home and business, operating as a thriving day spa, Hidden Valley Eco Lodges and Day Spa.

The private main residence is made of rammed earth for thermal comfort and has three bedrooms, luxurious bathroom and a large open plan living area. A private jacuzzi on the spacious entertaining deck is the perfect spot for enjoying beautiful bushland views at the end of a long day.

For day spa guests, there are four deluxe spa treatment rooms serviced by qualified staff, a reception area and lounge plus a commercial kitchen. Overnight guests can choose from five lodges with fully equipped kitchen and heated jacuzzi. As a going concern with a consistently high annual turnover, it’s a unique opportunity for the right buyer.

Set over 5.46ha, the property is also home to a very special group of residents: a small herd of alpacas, which are included in the sale.

Price guide: $6.5 million

Inspection: By expression of interest

Agent: Susanne Broido, The Agency 0499 770 237