Suburbs located in the inner ring of Melbourne (within 0 to 4 kilometers of CBD) are experiencing the lowest vacancy of only 0.60% in March while vacancies for rental properties within 4 to 10 kilometers of the CBD are currently 0.90%. The middle ring of suburbs located within a 10 to 20 kilometer radius of the CBD has recorded the largest decline over the last 12 months to 0.80% from 1.40%. If you are about to buy or sell a house then hire a conveyancer www.econveyancingmelbourne.com.au to perform conveyancing process.
While vacancies continue to remain tight, rents continue to see significant price movements. representing an increase of 3.85% over the previous quarter and 12.50% on an annual basis. While median rents for 2 bedroom units achieved growth of 3.70% from the previous quarter to $280/week, and in comparison to December 2006 rents have grown significantly by 16.67% These low vacancy rates will result in more people opting to buy and look at options including apartments, villas and other higher density housing.
Supply cycle to continue within the CBD, Docklands continues to be particularly active; Net absorption across the North Shore to average 18,563 sq m per annum over forecast period, with North Sydney the main contributor;
North Shore total vacancy to average 10.08%, with Crow’s Nest/St Leonard’s the lowest at 8.03%, followed by Chats wood 10.36% and North Sydney 11.87%; Over the next five years supply is limited to the North Sydney office market, three major refurbishments and redevelopments are likely to enter the market which will continue to hamper any recovery for North Sydney.
Over this forecast period, net supply levels are to average 13,115 sq m, well ahead of historical results of -1,938 sq m. In the next six months, we will witness the re-entry of part of Chats wood’s Zenith Centre after undergoing refurbishment (hence the withdrawal of stock in January 2008).
However not included within these forecasts is the redevelopment of the ABC site which is will add approximately 35,400 sq m of stock across six buildings.