Residential vacancy at lowest rates in 40 years

Melbourne’s residential vacancy rate is hovering at around 0.5%.  This is the lowest vacancy rate since records have been kept 40 years ago!

Economic forecaster, BIS Schrapnel have reported that they expect residential rents to rise 50% over the next 5 years as there is an acute shortage of rental stock available.

Victoria’s current immigration is approximately 88,000 per year and Australia’s population is growing at the fastest rate since 1947.

Given these economic parameters, it is clearly a great time to buy real estate.

Auction clearance rates have fallen from 80 odd percent 12 months ago to around 53% currently giving further opportunities for people to purchase good value in the market.

The current economic commentary is that official interest rates are reported to fall to 3.75% by March next year!!

With falling interest rates and increasing rental values and the pressure put on available stocks with the first home owners grant, there is a cocktail for rapid growth in the under $500,000 market.

Mark Forytarz

www.castrangilbert.com.au