We provide expert property management in Newcastle and Lake Macquarie. Based in Charlestown NSW, we have been delighting property investors with our personal, professional service since 2011. If you find this article helpful or enjoyable, please subscribe or share it with someone else who may benefit.
Back in September and October 2020, we highlighted data which showed Lake Macquarie East had the lowest rental vacancy rates in the entire country (as at end of Sept 2020). We also commented on research showing that people are relocating to regional areas away from capital cities, which is in turn helping to drive house price growth and lower vacancy rates in regional areas.
Now, thanks to data provided by SuburbTrends, we have a remarkable visualisation which shows - in just 30 seconds (!) - the changes in vacancy rates among capital cities and regions over the past 24 months.
Of specific note we see the shift towards record low vacancy rates in regional NSW vs skyrocketed vacancy rates in capital cities.
In addition, the chart below shows vacancy rates by capital city and regional markets as standing now (as at end of January 2021) versus 6 months ago and 12 months ago.
This serves as a great reminder to investors to localise your sources of real estate knowledge, as capital-city-centric media reports are often way off the reality of the regions.
As this data shows, it only takes such a small percentage of capital city households to decide it is time to migrate out to the regions to have a massive impact on both rental vacancy rate and inventory levels.
The Impact of Rental Demand Exceeding Rental Supply In Newcastle and Lake Macquarie
Right now, there are very high tenant numbers seeking homes around the Newcastle and Lake Macquarie area, with many in increasing states of distress. The number of people now NEEDING to find a home (as opposed to CHOOSING to make a change) is significant, as owners return to previously rented properties, investors choose to sell, or tenants simply compete for the relatively few vacant properties available.
On the ground, this is resulting in some extraordinary offers above advertised rental amounts by some tenants desparate to secure a home having had knock-back after knock-back.
Of course, these are conditions which favour the landlord. However a crucial role for property managers at this time is to retain a balance of good rental return for an investor while not being exploitatively opportunistic.
As the current demand exceeds supply, we're reminding our investors that the highest paying tenant is often not the best choice for the long term interest of the investment (let alone for the the difficult circumstances many tenants are finding themselves in).
Like to chat more about this? Contact us today.
We provide expert property management in Newcastle and Lake Macquarie. Based in Charlestown NSW, we have been delighting property investors with our personal, professional service since 2011. If you found this article helpful or enjoyable, please subscribe or share it with someone else who may benefit.
Carnelian Property Management Newcastle NSW
We are a family-owned and run Charlestown real estate agent offering expert property management across Newcastle and Lake Macquarie.