It wasn’t so long ago that 30 people would turn up to an apartment opening and bid up the weekly rental asking price by up to $50 in a Dutch English auction. We were told by the media that Sydney was experiencing a critical housing shortage with an average vacancy rate of 1.2% – well averages (and methodologies) can be very misleading indeed.
Let’s take a look at the residential vacancy rates in the CBD – as compiled by SQM Research using this great online tool.
An 8.8% vacancy rate might be suggesting that people who were up until recently less price sensitive (finance industry and those on the LAFHA) are leaving the CBD. The forces of supply and demand are coming into play as they always eventually do.
This recent SMH article suggests it’s possible to get up to 20% off original asking prices. Time to do your own math …
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All well and good unless you live in Brisbane (4000) and the vacancy rates actually are between 1.7 and 2.0%
Interesting! I hadn’t realised how far vacancy rates had moved. Just to be pedantic, though, a Dutch auction works by having prices come down until the item is sold, not up. So perhaps a Dutch auction is the appropriate label for what’s happening now, not a while back.
Thank you sir – I have changed auction nationalities appropriately.
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