Investment Property Market Snapshot
Latest industry statistics and analysis.
Vacancy rates fall
Data from SQM Research showed the national vacancy rate fell to 2.2 per cent in August (down from 2.3 per cent in July). Hobart continued to have the lowest vacancy rate at 0.4 per cent (down from 0.5 per cent) cent, while Perth had the highest at 4.6 per cent (down from 4.9 per cent). Melbourne and Sydney held steady at 1.7 per cent and 2 per cent, respectively.
Asking rents rise
Capital city asking rents for September rose 0.4 per cent for the month to $549 p/w for houses and remained steady for units at $438 p/w, according to SQM figures. Over the 12 months, rents were up 2.4 per cent for houses and 1.9 per cent for units.
Rental growth up, yields down
According to CoreLogic research, rents were 2.8 per cent higher in August (over the 12 months) with city rents up 2.7 per cent (increasing in all capitals except Brisbane, Perth and Darwin) and regional rents up 3 per cent. Gross rental yields were recorded at 3.6 per cent nationally (3.3 per cent combined capitals and 5 per cent combined regional), and were unchanged in Adelaide and Canberra, and lower in all other capitals.
Housing returns slow
CoreLogic’s Accumulation Index (compares value changes and gross rental yield) revealed total returns from the housing asset class over the 12 months to August were 13.2 per cent (13.5 per cent for houses, 12 per cent for units). Returns were higher in the capital cities (14 houses, 12.3 units), than in the regions (11.7 houses, 10.2 units).
Interest-only loans fall
Based on the quarterly property exposures data of ADIs, interest-only mortgage lending fell 7.0 per cent in the June quarter, according to APRA. A total of $30.083 billion in interest-only mortgages were approved in the quarter, accounting for 30.5 per cent of the value of all new mortgage lending.
Rental affordability improves
The latest REIA Housing Affordability Report has found the proportion of median family income required to meet rent payments reduced 0.6 per cent to 24.3 per cent over the June quarter. Rental affordability improved in NSW (-04 per cent to 28.6 per cent of income), Victoria (-0.7 / 23.1), Queensland (-0.7 / 23.0), SA (-0.7 / 21.9), WA (-0.5 / 18.1), Tasmania (-0.8 / 25.8), NT (-0.6 / 23.1) and ACT (no change / 17.9).