Latest SQM Research released this week showed Brisbane’s vacancy rate for January recorded a 0.5 percentage points decline to 2.4 per cent.
This can be attributed to our “surplus rental property stock, particularly in the inner city, are being absorbed at a rapid rate due to the strong population growth” according to SQM Research managing director Louis Christopher in the Financial Review.
Louis also went on to say with the way things are going we’re likely “to see rental vacancy rates fall below 2 per cent this year” and that we can “expect rents to pick up significantly as a result”.
Nice news for landlords!
In other news Chief Economist from the REA group, Nerida Conisbe noted on Sky News that realestate.com.au is starting to see increases in distress development site listings in Brisbane.
An insight that could be related to developers paying very high prices for sites and lacking confidence around demand for completed projects (especially apartments).
Lastly this week Stamp Duty is in the spotlight.
State governments seeking to phase out stamp duty in favour of a land tax should, borrow or seek out private financing to fund the costs of the reform, a meeting of the NSW review into federal-state relations has heard.
According to the Financial Review, Former Treasury secretary Ken Henry said the biggest obstacle to abolishing stamp duty, the “drug you [states] can’t get yourself off”, was the short-term fiscal hit of replacing the lump sum intake with an annual land tax.
Stamp duty on property sales has long been criticised by economists for locking people into homes that no longer suit their needs, retarding labour mobility, and penalising renters seeking to buy a home.