We provide expert property management in Newcastle and Lake Macquarie. Based in Charlestown NSW, we have been delighting Newcastle property investors with our personal, professional service since 2011.
Find out the 7 great reasons to work with us, and if you find this article helpful or enjoyable, please subscribe or share it with someone else who may benefit. Back in September 2020, we wrote a number of articles sharing data specific to Newcastle and Lake Macquarie investment property, which showed how people were relocating to regional areas away from capital cities. Those changes were cited at the time as resulting in driving house price growth and low rental vacancy rates in regional areas. Now, a full year later, fresh research continues to emerge showing that this trend is lasting - great news for investors in the Newcastle and Lake Macquarie region! In this post we summarise the latest research and data highlighting the impacts of regional migration on rental vacancy rates and housing affordability across the Newcastle and Lake Macquarie region. The findings are remarkably similar to our article 12 months ago. Rental Vacancy Rates Remain Low Across Newcastle and Lake MacquarieAs we discussed just two weeks ago, rental vacancy rates have remained low across most of Newcastle and Lake Macquarie over the past 12 months. Low vacancy rates generally indicate tight supply vs demand for available properties, and are generally accompanied by rent increases on the market. As vacancy rates begin to increase, we see a softening of the high asking rents experienced in times of tighter availability, and also an increase in time on market for those wishing to obtain top-of-market rent. Examples of these low vacancy rates across the region as at the end of August 2021 include:
Data is obtained from SQM Research. Newcastle and Lake Macquarie Rental Vacancy Rates Are Massively Lower Than Sydney OK, so rental vacancy rates around Newcastle and Lake Macquarie are ranging around 0.2% to 0.4% across the above examples. But what exactly does that mean? How does that compare to a sample of Sydney suburbs as a reference point? By comparison, following were the August 2021 rental vacancy rates for a selection of suburbs within close proximity to Sydney CBD:
To put that in perspective, the rental vacancy rate in the North Sydney postcode of 2060 is nine times greater than in the New Lambton postcode of 2305, and 18 times greater than in the Merewether postcode of 2291!
So in short, rental properties in the Newcastle and Lake Macquarie region are in much shorter supply than for our neighbours south of the Hawkesbury. These references are supported more broadly by national rental vacancy rate data showing that:
The Impact Of Regional Migration On Housing Affordability Of course, we've all seen property prices skyrocket since COVID kicked off in 2020. The migration to regions such as Newcastle and Lake Macquarie is real, and continuing. Research released by realestate.com.au on 29 September 2021 showed that Newcastle and Lake Macquarie region was the 14th highest in the nation for average views per property, based on August 2021 data. Putting some more data behind "the vibe" of what we've witnessed, the Housing Industry Association (HIA) measures housing affordability with its HIA Affordability Index, which is calculated for each of the eight capital cities and regional areas on a quarterly basis and takes into account the latest dwelling prices, mortgage interest rates, and wage developments. Recent findings highlight that:
Why Are So Many People Relocating To The Regions From Capital Cities? Anecdotally, it seems likely that recent COVID lockdowns have triggered a continued wave of interest in regional living as many seek freedom away from harsher lockdown measures closer to CBDs. Recent research into Australians relocating has indicated that:
Additionally, and top of mind for many these days is the significant increase in people working from home. A major review by the Productivity Commission found that:
The Strength of Investment Property In Newcastle and Lake MacquarieSummarising the above, we can conclude that:
Are you investing in Newcastle and Lake Macquarie? We specialise in residential property management in the region and love looking at the data behind the success of your investment.
We provide expert property management in Newcastle and Lake Macquarie. Based in Charlestown NSW, we have been delighting Newcastle property investors with our personal, professional service since 2011.
Find out the 7 great reasons to work with us, and if you found this article helpful or enjoyable, please subscribe or share it with someone else who may benefit.
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Carnelian Property Management Newcastle NSWWe are a family-owned and run Charlestown real estate agent offering expert property management across Newcastle and Lake Macquarie. Want More?Build your property management knowledge - get regular tips and advice for landlords and tenants straight to your inbox.
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