Rockhampton's rental vacancy rate tightens again
RENTAL vacancy rates continue to tighten in Rockhampton, adding weight to further evidence of a property market recovery.
Property valuers Herron Todd White noted the vacancy rate had fallen to about 3 per cent in its Month in Review for July report after the vacancy rate had been estimated at 3.5 per cent in June.
This is a major improvement in fortune for the region after the Rockhampton vacancy rate reached 8 per cent just two years ago.
"The short to medium term performance of the Rockhampton market and region overall is generally considered to be a period of stabilisation,” HTW said.
"Capital growth is not expected to be huge but returns should remain fairly solid in the interim with vacancy rates showing a tightening trend, currently at approximately three per cent.
"Upon reflection from this time last year, we are happy to report our position on the property clock has improved, from a declining market to now be at the bottom of the market.
"As a result, $500,000 will purchase a similar product type as 12 months ago.”
A snapshot of four-bedroom homes for rent in Rockhampton yesterday showed 80 properties available across a wide price range.
Gracemere had the most properties listed at around $300 a week while a four-bedroom home in upmarket Frenchville was asking $540 a week.
A four-bedroom home in Earl St at West Rockhampton was being advertised at $440 a week while a high-set weatherboard home in Berserker would cost just $230 a week.
HTW said sets of flats remained a sought-after option for investors. "Currently $500,000 is likely to buy a set of up to five flats,” it said.
"With recent sales of flats showing gross returns in the order of 8 per cent to 9 per cent, this is probably the best return available in current market conditions.”
HTW said buyers at this price point ($500,000) should be reasonably comfortable investing into the current market where prices have been stabilising over recent months and a number of infrastructure projects are in the pipeline for the region including Rookwood Weir, the Capricorn Highway duplication and the Rockhampton Ring Road project.