â$100k blindsideâ: Home buyers stung by greedy vendors Queensland is in the midst of housing market boom and yet some houses are still not selling at auction and itâs all down to greedy vendors.
Property by Darren Cartwright
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Subscriber only Greedy vendors are squeezing every dollar out of desperate home buyers, some even holding out for unrealistic reserves that have forced sellable properties to be passed in, experts say. Over the past few weeks, several houses have failed to sell with real estate agents quietly claiming it is purely because of unrealistic reserves. One agent, who did not wish to be named, said one property they listed failed to sell at auction after the vendor factored in a 20 per cent increase in the reserve to offset the rising property market.
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at 11:20 am on May 12, 2021 | 4 comments
SQM Research has released its rental vacancy data for April, which reports a national rental vacancy rate of only 1.9% – the lowest level of vacancies since March 2013.
Rental vacancies are zipped tight everywhere except Melbourne and Sydney, which have been hit hardest by the loss of international students, as illustrated clearly in the table below.
Rental vacancies are tight everywhere outside of Melbourne and Sydney.
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Vacancy rates across Sydney CBD and Melbourne CBD remain elevated at to 7.3% and 8.3% respectively on the back of the apartment oversupply.
Fringe suburbs earning best returns for investors
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Houses in outer fringe markets and in mining towns such as Kambalda East in WA are achieving gross rental yields as high as 16 per cent boosted by tight rental supply and high demand.
Similarly, high demand for housing in the mining towns in central Queensland has resulted in gross rental yields of up to 12 per cent despite prices rising by a similar amount, lifted by the current resources boom.
In regional Victoria, houses in Coleraine in Warrnambool and south-west regions are achieving 8.5 per cent gross yields, while houses in Manilla in NSW’s New England region are getting similarly strong returns of 8.6 per cent, CoreLogic data shows.
Where the bargains are: Opportunities remain for first-home buyers
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First-home buyers worried about being shut out of the market by extra competition from a revival in interest by cashed-up investors can take heart from the fact that affordable real estate can still be found in some pockets of Sydney and Melbourne.
While property prices across both major capital cities in general continue to rise, some unit and apartment prices remain steady or, in some cases, are actually falling.
Unit and apartment prices in the Sydney CBD remain steady or, in some cases, are falling.
Asking rents soar to record highs in coastal areas
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Rents have soared to record levels in many coastal areas in response to shrinking supply and rising demand from tenants moving out of the big cities and into regional and warmer locations.
Asking rents for houses in the Gold Coast have surged 32 percent in the past 12 months to a record high, while units rose 16 per cent.
Sunshine Coast houses also fetched record high rents, which rose 18.5 per cent and 15.7 per cent for units.
Asking rents for houses like this one in Port Macquarie have surged 19 per cent over the year as demand outstripped supply.