Rentals Snapped Up

Newcastle Herald

Wednesday November 9, 2005

SALES SALLY CROXTON

IT was harder to rent a property in Newcastle last month than anywhere else in NSW.

The declining residential rental vacancy rate is good news for property investors gradually returning to the market but not so good for renters.

The Real Estate Insitute of NSW issued its latest vacancy rate survey this week showing that Newcastle's rate stood at just 1.2 per cent last month, down from 2.3 per cent in September.

As well as being the lowest in Newcastle for the past 12 months it was the lowest in the state.

Robinson Property property manager Kay Lachlan said she had noticed a marked change last month.

"It doesn't take as long to rent properties now," she said.

She believed it was the result of fewer properties to lease after many investors sold their rentals last year when the State Government imposed new taxes, since lifted, on investment properties.

"Anything that presents well rents quickly now and it always goes crazy in January-February when the students come back."

She said she was expecting rents to go up "a touch".

This week's private treaties show some strong sales, particularly in lakeside suburbs.

But typical of today's market, some sales have taken a time to accomplish. One, a gracious 1977-built homestead-style house on a 1432 square metre block with excellent lake views at 34 Thompson Road, Speers Point, had a $829,000 price tag when it was our House of the Week in April.

It has now sold through Lyn Collis of Robinson Property for $675,000.

Global Property's Jamie Lovett said a young couple who bought in Old Valentine 12 months ago for about $500,000 and had just re-listed it for sale were likely to experience about a $40,000 drop in price.

But there were exceptions where prices had risen in the same period, like the five bedroom weatherboard house Global had recently sold at 42 Christopher Avenue, Valentine.

It fetched $590,000 in September last year and had just resold for $620,000.

Everything Global had listed in Warners Bay had gone but Eleebana was a more difficult market. He said houses in what was a "bees knees" suburb were typically now 30 years old and owners of them from new often failed to update or realise there were new subdivisions elsewhere offering strong competition and price accordingly.