By Paul Bennion, Managing Director, DEPPRO
Earlier this year I predicted that the property markets that have been overshowed by the recent real estate boom in Melbourne and Sydney should begin in recover during 2018.
These "Cinderella" property markets include Brisbane, Adelaide, Canberra and Perth.
I am pleased to see that this prediction is becoming reality especially in Brisbane and Perth.
Both these two capital cities have seen their rental vacancy rate drop consistently over the past several months.
Historically, the rental market is a forward indicator of the overall health of property market and these falling vacancy rates indicate that both these property markets are on the road to recovery.
Brisbane has shown the most promising signs of recovery with Brisbane rental filling up fast due to increasing demand for people moving to the city from Sydney.
The latest figures from property valuation firm SQM Research reveal rental vacancies in Brisbane fell to 2.9 per cent in July -- down from 3 per cent in June -- marking the fifth straight monthly decline this year.
Over the coming year, the demand for property in Brisbane is expected to rise as more people move from Sydney in search of more affordable housing.
The gap between Brisbane and Sydney house prices is the largest it had been in at least 15 years.
In addition, with an improving State economy in Queensland, there are greater employment opportunities for people migrating to State and this is an additional key factor that will underpin the revival in the Brisbane property market over the coming year.
In Perth, the rental vacancy rate at 4.5% is now the lowest since 2015. Overall, the number of properties listed for rent in Perth is 25% lower than the same time last year.
Canberra's property market is also on the rebound with the ACT's vacancy rate falling to the second lowest in the country, and rents only surpassed by Sydney.
SQM Research shows a vacancy rate of 0.8 per cent in July, down from 0.9 per cent in June and 1.1 per cent a year ago. Only Hobart has a lower vacancy rate at 0.7 per cent.
Out of 72,623 properties across Canberra, there were only 687 listings.
Canberra's house rents are up 11.7 per cent over the year, the highest rise in the country.
Adelaide's vacancy rate is also in a downward trajectory with the vacancy rate in the city falling to 1.3 per cent from 1.5 per cent, and down from 1.8 per cent a year ago.
DEPPRO operates in all of the major capital cites in Australia already during the last four months we have seen an upswing in the number of tax depreciation reports we are undertaking for clients in Perth, Adelaide, Brisbane and the ACT.
These astute investors are now buying property in the expectation of capital growth moving forward and using the generous tax depreciation benefits associated with property investment to help fund their acquisitions.
Click the link below and complete the details to ensure your client receives a higher return on their cashflow.