Lower property rents, higher vacancies in Hobart Tasmania
Sandy Bay and Wrest Point | Tourism Tasmania | Southern Cross Television
A report in The Mercury today tells us that the vacancy rates for rental properties in Hobart have increased markedly over the last few months and are now the highest in over a decade. This of course translates to lower rental charges which is great news for anyone looking to rent in Hobart. All the stats are based on averages so will not be true in all suburbs, but the trend is there.
We find that even if those relocating intend to buy, they will often rent initially so that they can be sure of which suburb or town suits then best when buying down the track.
Remember that if you are planning to rent in Tasmania that most agents will not allow you to apply for a property unless you, or someone on your behalf, has viewed it first. So if you need someone to do the searching for you or just to look at one or two properties you have found online, then please contact us.
PROPERTY agents have started to drop their rents in a bid to lure tenants after vacancy rates hit the 4 per cent mark for the first time in decades.
Some agents are reducing rents by nearly 10 per cent to counter a struggling rental market.
Latest figures show Hobart’s vacancy rate in February was 3.9 per cent the highest rate in more than a decade.
Real estate agents say the higher availability of housing stock has given tenants the upper hand when looking for rental properties.
However, Australians for Affordable Housing campaign manager Sarah Toohey said yesterday rent reductions were still not enough.
REIT figures show Hobart’s vacancy rate increased by 1.5 per cent in the 12 months to February 2012.
During the same period the average rent for a three-bedroom house in Hobart went from $340 to $350.
Ms Toohey said research showed many Hobart renters were struggling with rental stress.
“Rents have gone up consistently in the past five years,” she said.
“Until we see increased availability reflected in rental prices we are not going to solve the housing affordability problems in Tasmania.”
REIT statistics show the rent for a three-bedroom house in Hobart has increased from $160 to $350 in the past 10 years.
Paul Berry, managing director of 4 one 4 Real Estate, said in areas where there was a concentration of rental properties, prices were being lowered.
Mr Barry said two-bedroom units in areas like Brighton were being reduced from about $280 a week to about $260.
PMM Real Estate principal Nigel Heaven said the vacancy rate for his company’s rental properties had gone from 0.5 per cent in February 2009 to 6.6 per cent in February this year. Mr Heaven said the problem was because of an over supply of rentals due to a lack of sales.
REIT president Adrian Kelly said yesterday a slow sales market had contributed to more properties being placed on the rental market.
However, Colony 47 chief executive Therese Taylor said rental housing stock in Hobart was still far too low.