Vacancy Rate Speculation
Wednesday 28 Feb 2018
News out last week revealed Sydney vacancy rates have hit a six-year high. That shouldn’t really come as a surprise as the rate has been increasing steadily, but it does highlight the fact that the market has reached an interesting point. So what does it mean?
It means finally new building projects are coming online. These are developments long planned and much needed to meet the demand of Sydney’s growing population which has been impossibly tight for so long.
I think that’s important to remember as the market takes a little time to adjust to the increase in availability. These are desperately needed properties and demand is strong. For example Morton had a team on the ground to manage the leasing of a new complex in Penrith and it was filled within four weeks of completion.
Our sales agents work closely with the Morton team of professional property managers so they can give potential buyers up-to-date, honest feedback on rental demand in an area. In turn our team of property managers have the experience and systems in place to maximise exposure and minimise vacancies managers understand the pressure investors feel if their property is vacant. Our teams have decades of accumulated experience on which to base their assessments.
Investor households and those considering buying an investment property need to have those conversations so they know realistically what to expect in terms of return and growth from their property. And I think having those honest conversations will be reassuring.
I read a great quote during the week by the Chairman of Property Investment Professionals of Australia: “Educated investors understand the importance of time in the market, not trying to time the market, which is really just speculation by another name.”
Don’t speculate. Don’t stress. Talk to the Morton team and gather the right knowledge so you can make the right decision with the right expectations.