Tenancy search narrowing
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Tuesday, 12 September, 2000 - 21:00
FINDING a tenant might become more difficult over the next 12 months as the supply of new residential buildings peaks following the GST boom in new housing, according to Hegney Property Valuations managing director Gavin Hegney.
He said that historically residential vacancy rates tended to rise after a building boom as the number of rental properties outstripped tenants.
“Over the last few years, the Perth rental vacancy rate has been virtually at a historically low level of less than three per cent,” Mr Hegney said.
“However, with a big surge in new investment properties coming onto the market as a result of the GST new housing boom, the rental vacancy rate may rise significantly.
“With landlords in some sectors finding it more difficult to find tenants, the rental prices for those properties will become more competitive.”
He said the best long-term investment property which offered secure rental returns tended to be located near city family suburbs.
“In contrast, investors should be wary of areas which have a high concentration of rental properties because these suburbs are the most vulnerable to rental discounting when the rental market softens,” he said.
He said that historically residential vacancy rates tended to rise after a building boom as the number of rental properties outstripped tenants.
“Over the last few years, the Perth rental vacancy rate has been virtually at a historically low level of less than three per cent,” Mr Hegney said.
“However, with a big surge in new investment properties coming onto the market as a result of the GST new housing boom, the rental vacancy rate may rise significantly.
“With landlords in some sectors finding it more difficult to find tenants, the rental prices for those properties will become more competitive.”
He said the best long-term investment property which offered secure rental returns tended to be located near city family suburbs.
“In contrast, investors should be wary of areas which have a high concentration of rental properties because these suburbs are the most vulnerable to rental discounting when the rental market softens,” he said.