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Vacancy rates expected to remain tight, Victoria caps council rate increases, and which suburbs can be considered affordable in 2024?
Welcome to Property Buzz! Today is Friday, 12 January.
A slight easing of vacancy rates in December hasn’t disguised the abysmal figures of 2023, with PropTrack reporting that the national rental vacancy rate slightly increased by 0.05 percentage points to 1.12 per cent in December 2023. But rentals were ultimately 0.13 per cent tighter than the previous year.
– Sydney and Melbourne saw minor increases in rental vacancy rates, while Brisbane’s market remained extremely tight with vacancies below 1 per cent.
– Adelaide and Perth had the most concerning figures, however,with vacancy rates below 0.75 per cent.
According to the firm’s analysis, conditions are not expected to materially worsen over the course of 2024, as they did in 2022 and 2023. That being said, there’s little indication that the year will bring relief for renters.
-Meanwhile, Victoria’s state government is looking to reduce pressures on household budgets over the coming years by capping council rate increases to the forecast Consumer Price Index for the next financial year.
– Called the “Fair Go Rates system,” the rate cap will sit at 2.75 per cent for the coming period, according to Victoria’s Minister for Local Government.
– The policy was a recommendation that came out of the Essential Services Commission, though council service rates and charges used to fund waste collection and management will not be subject to the rate cap.
– And the research team at LJ Hooker have identified some of the affordable suburbs in Australian capital cities that buyers may want to target in 2024.
– In Sydney, Glenmore Park and Raby are top choices for families, while Dee Why is recommended for apartment seekers. Melbourne’s eastern suburbs, including Croydon South, Carrum Downs, and Bayswater North, are predicted to grow in popularity.
– Brisbane’s Taringa and the Gold Coast’s Elanora and Arundel are attractive for their price points. In Adelaide, Payneham and Plympton Park are expected to see steady growth and strong buyer demand.
– In Perth, Bayswater and Greenfields were highlighted despite the city’s tight supply. In Hobart, Kingston and West Hobart have been recommended for budget-friendly investments.
That’s Property Buzz for today.
See you again tomorrow, 13 January, for your daily dose of Property Buzz.