Ensure you never miss an issue of the
real estate business bulletin
Vacancy rates edge higher in mining towns

Vacancy rates edge higher in mining towns

by Simon Parker 0 comments

Staff Reporter

Residential vacancy rates are rising in a number of key mining towns, with investors being urged to be on guard for any negative shift in the broader economy and resources sector.

Figures released this week by SQM Research suggest towns such as Karratha (March vacancy rate of 3.7 per cent), Port Hedland (4.6 per cent) and Gladstone (5.6 per cent) are seeing less demand for rental property.

“We are now watching the data very closely on the various mining towns in the country,” said managing director of SQM Research, Louis Christopher.

“Property investors over the past 10 years have done extraordinarily well if they held real estate in mining towns. However, there is always a risk that when a down turn arrives, these markets could have a very rapid and severe correction.

“We remind investors to remain very cautious when it comes to these towns.”

For other capital cities, SQM reported that vacancies generally remained steady or modestly declined for the month of March. The net result at a national level during the month was 52,931 vacancies, which represented a vacancy rate of 1.9 per cent, similar to the preceding month.

Of the capitals, Adelaide reported a vacancy rate of 1.3 per cent in March, which was the same as the previous month; Perth was at 1.0 per cent, up 0.1 per cent; Melbourne came in at 2.6 per cent, down 0.1 per cent; Brisbane recorded a 1.7 per cent vacancy rate, down 0.1 per cent; Canberra’s rate hit 1.4 per cent, up 0.2 per cent; Darwin’s fell 0.1 per cent to 1.2 per cent, while Hobart reported a 0.1 per cent drop to 2.0 per cent.

SQM said Canberra’s rise in rental vacancies has also been noticeable since July 2012 and may be associated with a well-known increase in apartment developments, together with federal government attempts to reduce the budget deficit.

At this stage, SQM said it is too early to make a valid assumption as to why vacancies may be beginning to loosen in Perth, however it should be noted SQM Research regards the vacancy rate in this capital city as still in favour of landlords.

Contrastingly, Melbourne has revealed a gradual decline in vacancies over the past months, falling from above three per cent in December 2012 down to 2.6 per cent in March 2013. This is seen as a positive for this capital city, which has been recording elevated levels in vacancies for quite some time now.

SQM said its calculations of vacancies are based on online rental listings that have been advertised for three weeks or more compared to the total number of established rental properties.

le>.b-autolinks{text-decoration:underline}.b-autolinkshadowbox { display: inline; position: relative; cursor: pointer; color: #428bca;} .b-autolinkshadowbox:hover > span { display: block !important; } .b-autolinkshadowbox__links { white-space: nowrap; z-index: 999; display: none; left: 0; border: 1px solid #bfbfbf; border-radius: 5px; font-size: 12px; top: 12px;color: #000; padding: 10px; position: absolute; background-color: #FFF; box-shadow: 0px 0px 20px 1px #bfbfbf; } .b-autolinkshadowbox__links > a { display: block; padding: 3px 0; }
Vacancy rates edge higher in mining towns
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
The difference between an average agent and one who dominates

McGrath Crows Nest’s Peter Chauncy is number 10 in this year’s REB Top 100 Agents ranking. Peter, however, is more likely not surprised ...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?