[zaph]

Quote

MELBOURNE'S rental market has turned in favour of tenants with vacancy rates - particularly for high-end apartments - hitting a six-year high.

Apartments in St Kilda Road and Docklands have been most affected thanks to a construction boom that has flooded the area with new units whose owners are struggling to attract renters.

The glut should lead to cheaper rents and more choice as thousands more units are added over the next few years.

Advertisement: Story continues belowLast month, 550 apartments - more than one in five - were vacant in the prestigious St Kilda Road precinct.

The vacancy rate in Docklands has nearly doubled in the past year, with more than one in 10 rental units now empty, according to SQM Research.

''Supply has run way ahead of demand. Melbourne is experiencing what regularly happens on Queensland's Gold and Sunshine Coasts,'' SQM managing director Louis Christopher said.



Read more: http://www.theage.co...l#ixzz1kmXNGzxp

[yoda]

But there is supposed to be a shortage or properties everywhere.

As happens in QLD, me confused.

You know it is starting to get to desperate times when they start contradicting their own lies and cult beliefs.

[satanoperca]

There is no shortage of apartments in Melbourne. I watch the Docklands, Port Melbourne, St Kilda and Elwood area and the increase in supply of rentals is incredible. The number of new apartments being under construction and near completion in inner Melbourne is astonishing. Given many where sold at high prices the yields are going to be terrible especially given the often high body corporate fees. I would not like to be holding at this point and the only thing saving investors from leaping from the roof tops is lowering interest rates.

I forsee price drops from peak in inner Melbourne apartments of around 25% over the next two years and net rental yields of 2-3%. Not looking healthy to me.

Cheers

[firehawk]

zaph said:

Last month, 550 apartments - more than one in five - were vacant in the prestigious St Kilda Road precinct.

20% vacancy rate! Granted, just in one area, but significant nonetheless.

[dodgydamo]

Anecdotally I'd say this 'easing' is not limited to these areas or apartments...

We have recently moved into a 3 bed rental home in the middle NE suburbs after under offering the advertised rent.
Last time we rented in Melbourne (7 years ago) we had to over offer a similar amount to secure the place we wanted.

Admittedly though that was a more sought after area (as DINKS)

There's a fair bit of chat about PI's in the 'new' West being in trouble too...
http://www.heraldsun...2-1226243996889
http://www.theage.co...7.html#comments
http://www.macrobusi...cies-skyrocket/

[mattau]

firehawk, on 28 January 2012 - 11:52 PM, said:

20% vacancy rate! Granted, just in one area, but significant nonetheless.

Yes I'd say that is significant..

That's got to mean a fair bit of losses for the investors/owners