On the rental front; the average time-on-market to rent a property is approximately four weeks. The vacancy rate is currently sitting at around 3.3%, just a margin higher than around the same time last year.
With the vacancy rate above 3%, the market hasn’t been tight enough to drive rental rates up, however we have been lucky enough to maintain a solid, stable rental return for our clients.
While these figures would be considered fairly typical for the current quarter, as we approach spring and summer, we should see the enquiry levels pick up and the vacancy rate fall.
The promising news is that sales have really picked up over the past 6 months and there is suddenly a buzz amongst the buyers. Stock across the board is still relatively low, however this is to be expected at this time of year, and as we enter spring, there seems to be an excitement that SA has been lacking for too long. While there is never any guarantee about how this will translate in the market going forward, the general feeling amongst sales agents in SA is one of great anticipation.
There is much speculation that interest rates may be set to rise a little in the foreseeable future, however capital growth is the most important factor to keep in our sights and a significant cut to the Emergency Services Levy may offer a small reprieve for our landlords in the meantime.