RPData Australian Rental Market Review for January 2015 Report.

Dear Friends,

As you are aware we love to share and provide research to give astute property investors more knowledge and understanding of the market and broader economy.  Using our local market experience to bridge the gap between the research and current local market conditions.

We have attached the January 2015 RP Data Publication regarding RENTS to give you an idea of how the overall Australian Rental Market if performing.

Contact LJ Gilland Real Estate on info@ljgrealestate.com.au for Free Appraisals!

Contact LJ Gilland Real Estate on info@ljgrealestate.com.au for Free Appraisals!

In addition please find the following article published by T. Ryder for your perusal and information only.

quote “Capital rents continue to fall – or, at best, stagnate. Two recent research reports record little positive movement in residential rents in the capital cities, with most markets recording no growth or declining rents.

Residential rents around Australia stubbornly refuse to budge. Two sets of figures record the absence of meaningful rental growth in our capital cities in the past year.

One of the property magazines managed to concoct a “Rental growth at record levels” headline out of the figures from Domain Group and CoreLogic, but both sets of data show zero growth or falling rentals in most of the city markets.

The Domain figures for houses record no annual change for Melbourne, Brisbane and Adelaide and significant declines for Perth, Canberra and Darwin.

Hobart (up 3%) and Sydney (up 4%) are the only city housing markets to achieve minor growth.

Unit rents have been even more pallid. There have been annual decreases in Brisbane, Perth, Canberra and Darwin, growth around 2% in Sydney, Melbourne and Adelaide, and a 3.8% in Hobart as the best effort in capital city Australia.

There are similar results in the CoreLogic research. The combined capital city average is a 1.2% rise for houses and a 2.5% rise for apartments. Nationally, rents rose an average 2.6% for both houses and apartments, which suggests some of the regional cities have done slightly better than the state and territory capitals.

Rental markets are particularly poor in Canberra, Perth and Darwin, which mirror similarly mediocre performances on house prices in those cities in 2014.

CoreLogic suggests house rents in Canberra fell an average 5% in the past year, while unit rents are down 7%.  Perth has dropped 6% for houses and 4% for apartments.

The overall scenario is residential rents going nowhere or backwards in most of Australia’s major markets.

The rental research provides one of four data sets that show that “the chronic housing shortage” fabricated by the developer lobby is real estate’s biggest lie.

The second piece of evidence is the absence of major price growth in our major cities outside of Sydney (six of the eight capitals recorded growth below 5% in 2014), despite all the factors in favour of buyers, such as low interest rates, plentiful finance options and low unemployment.

The third factor is the high level of new home construction over the past two years (approvals recently reached record levels), eliminating any lingering notions that we weren’t building enough homes. And the fourth is vacancy rates in key markets, which suggest over-supply is the core issue, particularly in capital city apartment markets and boom-bust resources centres.

Here’s one illustration of how markets behave when there really is a housing shortage – and then what happens when developers go crazy and create the opposite problem.

Two years ago, when resources-driven demand was still high and accommodation was scarce, the median house price in Port Hedland was a whacky $1.2 million, having averaged above 20% per year growth over the previous decade. The median weekly rent was $2,500 per week and typical yields were above 10%. This is what happens when a shortage is real.

Then the iron ore industry went south, which coincided with an increase in accommodation supply. Developers have many skills, but timing is not among them.

Today the median house price in Port Hedland is $810,000, after decline averaging 7.5% per year for the past three years, including a 19% decrease in the past 12 months. The investor who bought at the average price two years would have lost $400,000 in value.

The median rent is now $1500, still ridiculously high but down 40% on peak levels, and the median rental yield is 7% – if you can find a tenant at all, given that the vacancy rate has been stuck in the 6% to 8% range for the past two years, according to SQM Research figures.

Last week I had an email from an investor who bought in this market in 2012 and was initially getting $1,750 per week. The property is now empty and advertised at $750 per week.

Such is life in mining centres, where outrageous peaks and troughs are the norm.

Such, too, is the behaviour of markets in reaction to supply-demand factors. When rents are stagnant, or declining, you can be confident that the market is tending more towards surplus than shortage.” unquote

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  • Tenants are shown about safety switches and water mains etc at handover at the property.  We meet all tenants on site for handover.

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LJ Gilland Real Estate have been member agents of the Real Estate Institute of Queensland since 1996 and are holders of all appropriate Real Estate Licenses. On all matter relating to Property Management advice, it’s our dedication, experience and professionalism that counts.

Since 1996 our Agency has demonstrated a genuine enjoyment of working with people, developing long term relationships and delivering on the promise of great service. Our Property Management Team offers investors with in-depth advise, well-researched rental valuations, and highly professional rental management services.

Being a family business, we place total emphasis on dedication, experience and professionalism in all areas, including Property Management, Sales and Body Corporate.

Because we are a family business we have a more personal approach than most other agents, would you have time available for Carlos and I to meet or speak with you personally to answer any queries you may have on how you will benefit from our services.

Best regards,

Linda and Carlos Debello

http://www.ljgrealestate.com.au

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Office direct line: 07 3263 6085

Carlos direct mobile: 0400 833 800

Linda direct mobile: 0409995578

Contact Us Today to Inspect! Email enquiries @ljgrealestate.com.au for Hassle Free Inspections!

Contact Us Today to Inspect! Email enquiries @ljgrealestate.com.au for Hassle Free Inspections!

We, at LJ Gilland Real Estate Pty Ltd, take our role as Real Estate Agents with the utmost care and precision to provide objective, impartial, and unbiased opinions about the value of real property by providing assistance in those who own, manage, sell, & invest in real estate. When conducting a property appraisal, we consider a series of facts, statistics, & other information regarding specific properties; analyse this data; to develop an opinion of value. Each appraisal challenges our ability to put analytical skills into practice, exercise sound judgement, and communicate effectively.  We very much appreciate this challenge.

 

 quarterly-rental-review-january2015

LJ Gilland Real Estate Pty Ltd@ljgrealestate @GillandDebello

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About ljgrealestate 据联大

Removing the Hassle from Sales and Rentals across South East Queensland. Aim to Empower other like minded Property Investors. L J Gilland Real Estate is a prestigious boutique agency specializing in Property Investment Management Services and the Sales of Investment Properties with tenants in place. Comprised of a top performing group of handpicked specialists, our Agents proudly serve Property Investors in Queensland. Since 1996 our Agency has demonstrated a genuine enjoyment of working with people, developing long-term relationships and delivering on the promise of great service. Carlos and Linda Debello offer property investor's the confidence to sell and lease in any market. We provide comprehensive market appraisals, exclusive multimedia marketing campaigns, and knowledgeable, highly personalized counsel on all aspects of real estate. Our Property Management Team is equally considerate, offering investors with in-depth advise, well-researched rental valuations, and highly professional rental management services. http://goanimate.com/movie/0M4bvcZzgIbI?utm_source=linkshare&uid=0u6RGtWsmlVc Carlos’ direct mobiles are 0400 833 800 & 0413560808. Linda’s mobiles are 0409995578 & 0414978700 (prefer email contact for Linda). Office 07 3263 6085. http://www.ljgrealestate.com.au http://www.yellowpages.com.au/qld/aspley/lj-gilland-real-estate-pty-ltd-14091356-listing.html http://au.linkedin.com/in/lindajanedebello http://twitter.com/GillandDebello http://www.facebook.com/pages/ljgrealestate
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