Latest news with #vacancyrates
South China Morning Post
13-07-2025
- Business
- South China Morning Post
Why can't Hong Kong retail landlords cut rents for struggling tenants?
In a commercial rental market beset by high vacancy rates, many Hong Kong landlords feel stuck between a rock and a hard place: giving tenants a break on rent makes it harder to pay mortgages and threatens asset value, but holding the line on rent runs the risk of driving tenants away. In this difficult environment, are landlords just being stubborn? It's complicated, according to agents and analysts. Retail sales in the city contracted for 14 straight months until May, when they expanded by 2.4 per cent to HK$31.3 billion (US$3.9 billion). The slump has wreaked havoc on retailers and brands, many of which have been forced to reduce their presence or exit the city altogether. Cinema operators and food and beverage operators were among the hardest hit. For example, Grand Ocean Cinema in Tsim Sha Tsui and Taipan Bakery, the inventor of so-called snow skin mooncakes, closed last month after 56 years and more than four decades, respectively. The vacancy rate in prime shopping centres hit a record high of 10.5 per cent at the end of June, as rents slipped 3.4 per cent in the first half of the year, according to JLL. High-street shops saw vacancy stabilising at 10.5 per cent, while rents dropped 2.3 per cent. With about 600,000 sq ft of new prime retail space scheduled for completion in the second half of the year, vacancy rates in prime shopping centres were likely to rise, dragging rents down by between 5 and 10 per cent this year, the property consultancy predicted.
CTV News
08-07-2025
- Business
- CTV News
Toronto saw lowest rent growth of all major Canadian cities in 2024: report
Condominiums and the CN Tower are shown along the Toronto skyline on Tuesday, April 25, 2017. THE CANADIAN PRESS/Cole Burston Toronto saw the lowest rent growth among all major urban centres across the country in 2024 due, in part, to rising vacancy rates in the city, a new report has found. Released by the Canadian Mortgage and Housing Corporation on Tuesday, the Fall 2024 Rental Market Report showed that for purpose-built rental apartments in the city, rent rose by 2.4 per cent annually in 2024 for a two-bedroom unit, down from 8.7 per cent a year earlier. 'Toronto had the lowest rent growth among major (Census Metropolitan Areas). This is the result of rising vacancy rates and a low turnover rate, which declined further in 2024. For occupied units under rent control, landlords had limited ability to raise rents beyond the provincial guideline,' it read. 'Moreover, with a record increase in the supply of rental apartment condominiums, landlords in the purpose-built sector prioritized keeping existing tenants by taking a more cautious approach to rent increases.' According to the report, the vacancy rate for purpose-built rentals in Toronto rose to 2.3 per cent in 2024, slightly higher than the 10-year historical average. 'An elevated number of condominium projects were completed in the City of Toronto over the past year, with 45% of their units rented out,' it noted. 'This led to a significant influx of condominium rentals in the area, providing much greater choice to renters. Faced with more competition, new purpose-built rental units remained vacant for longer, according to local market intelligence.' In and around Toronto's downtown core, there was an average annual rent reduction of about one per cent for condo apartments, the report said. Vacancy rates were also higher in suburban areas of the GTA, including Durham, York, Peel, and Halton regions. According to the report, those areas saw a 3.3 per cent vacancy rate for purpose-built rentals as 'supply outpaced growth in demand.' The report states that vacancy rates are expected to rise in most major markets in 2025. 'Sluggish job markets and decelerating migration are creating challenging environments for landlords and property managers,' it said. According to the report, while the slower rent growth in Toronto represents 'a modest improvement in rental affordability following years of erosion,' affordability challenges persist in the city. For more affordable units, turnover reached a 'new low,' as existing tenants face a 28 to 43 per cent premium to rent a vacant unit at the market rate, the report notes. 'Supply remained scarce for low-income renters, with a vacancy rate of only 0.4% for the least expensive units,' the report said.
Yahoo
21-06-2025
- Business
- Yahoo
Top 5 Cities With the Worst Housing Market Outlook (3 Are in Pacific Northwest)
House hunters haven't had much to cheer about the last few years, with record home values and tight inventory pricing many out of the market. That dynamic has begun to change in 2025 amid a general increase in the number of homes for sale. Find Out: Explore More: But there are still pockets of the country where finding a home remains a challenge — especially in the Pacific Northwest. In fact, that region is home to three of the five U.S. cities with the worst housing market outlook, according to a new analysis from LendingTree. LendingTree based its rankings on four key metrics: vacancy rates, housing unit approvals per 1,000 housing units, home value-to-income ratio, and annual changes in home value-to-income ratio. Low vacancy rates indicate there aren't many unoccupied homes in a particular city. This is usually a sign of heavy demand, stiff competition — and high prices. Similarly, a high home value-to-income ratio is a sign that homes are comparatively expensive. For example, a ratio of 5.0 means median home values are five times more than the median income. A ratio of 2.0 means values are only twice the median income. Here's a look at the five cities with the worst housing outlooks, per LendingTree: Vacancy rate: 4.76% Housing unit approvals per 1,000: 8.69 Home value-to-income ratio: 5.57 Change in ratio, 2022-23: 3.87% Be Aware: Vacancy rate: 4.56% Housing unit approvals per 1,000: 29.37 Home value-to-income ratio: 5.25 Change in ratio, 2022-23: 7.12% Vacancy rate: 6.70% Housing unit approvals per 1,000: 5.33 Home value-to-income ratio: 4.75 Change in ratio, 2022-23: 3.98% Vacancy rate: 6.33% Housing unit approvals per 1,000: 15.75 Home value-to-income ratio: 5.02 Change in ratio, 2022-23: 7.17% Vacancy rate: 5.31% Housing unit approvals per 1,000: 12.57 Home value-to-income ratio: 5.03 Change in ratio, 2022-23: 4.58% The main problem house hunters face in these cities is that there simply aren't enough homes available to buy, according to Matt Schulz, LendingTree's chief consumer finance analyst and author of 'Ask Questions, Save Money, Make More: How to Take Control of Your Financial Life.' 'The vacancy rates in Portland and Boise are less than half of those in many other big metros,' Schulz said in a press release. 'When that happens, prices rise, making things even more expensive. Unfortunately, this isn't likely to change in many of the most troubled metros because the data shows that insufficient building is being done.' In other parts of the country, however, market dynamics are trending in favor of buyers. Pending home sales in the U.S. decreased 6.3% in April, according to the latest data from the National Association of Realtors (NAR). A decline in sales typically means sellers have to make more concessions to buyers. 'Homebuyers in nearly every region of the country are in a better position to negotiate more favorable terms,' NAR Chief Economist Lawrence Yun said in a statement. More From GOBankingRates These Cars May Seem Expensive, but They Rarely Need Repairs This article originally appeared on Top 5 Cities With the Worst Housing Market Outlook (3 Are in Pacific Northwest) Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
21-06-2025
- Business
- Yahoo
Top 5 Cities With the Worst Housing Market Outlook (3 Are in Pacific Northwest)
House hunters haven't had much to cheer about the last few years, with record home values and tight inventory pricing many out of the market. That dynamic has begun to change in 2025 amid a general increase in the number of homes for sale. Find Out: Explore More: But there are still pockets of the country where finding a home remains a challenge — especially in the Pacific Northwest. In fact, that region is home to three of the five U.S. cities with the worst housing market outlook, according to a new analysis from LendingTree. LendingTree based its rankings on four key metrics: vacancy rates, housing unit approvals per 1,000 housing units, home value-to-income ratio, and annual changes in home value-to-income ratio. Low vacancy rates indicate there aren't many unoccupied homes in a particular city. This is usually a sign of heavy demand, stiff competition — and high prices. Similarly, a high home value-to-income ratio is a sign that homes are comparatively expensive. For example, a ratio of 5.0 means median home values are five times more than the median income. A ratio of 2.0 means values are only twice the median income. Here's a look at the five cities with the worst housing outlooks, per LendingTree: Vacancy rate: 4.76% Housing unit approvals per 1,000: 8.69 Home value-to-income ratio: 5.57 Change in ratio, 2022-23: 3.87% Be Aware: Vacancy rate: 4.56% Housing unit approvals per 1,000: 29.37 Home value-to-income ratio: 5.25 Change in ratio, 2022-23: 7.12% Vacancy rate: 6.70% Housing unit approvals per 1,000: 5.33 Home value-to-income ratio: 4.75 Change in ratio, 2022-23: 3.98% Vacancy rate: 6.33% Housing unit approvals per 1,000: 15.75 Home value-to-income ratio: 5.02 Change in ratio, 2022-23: 7.17% Vacancy rate: 5.31% Housing unit approvals per 1,000: 12.57 Home value-to-income ratio: 5.03 Change in ratio, 2022-23: 4.58% The main problem house hunters face in these cities is that there simply aren't enough homes available to buy, according to Matt Schulz, LendingTree's chief consumer finance analyst and author of 'Ask Questions, Save Money, Make More: How to Take Control of Your Financial Life.' 'The vacancy rates in Portland and Boise are less than half of those in many other big metros,' Schulz said in a press release. 'When that happens, prices rise, making things even more expensive. Unfortunately, this isn't likely to change in many of the most troubled metros because the data shows that insufficient building is being done.' In other parts of the country, however, market dynamics are trending in favor of buyers. Pending home sales in the U.S. decreased 6.3% in April, according to the latest data from the National Association of Realtors (NAR). A decline in sales typically means sellers have to make more concessions to buyers. 'Homebuyers in nearly every region of the country are in a better position to negotiate more favorable terms,' NAR Chief Economist Lawrence Yun said in a statement. More From GOBankingRates I'm a Retired Boomer: 6 Bills I Canceled This Year That Were a Waste of Money This article originally appeared on Top 5 Cities With the Worst Housing Market Outlook (3 Are in Pacific Northwest) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
News.com.au
12-06-2025
- Business
- News.com.au
Revealed: 20 suburbs where rents will keep rising
Rents are set to continue rising in at least 20 regions across the country over the next 12 months, with rental stock still a third below pre-pandemic levels and experts predicting a long road to recovery. A new report provided exclusively to News Corp by property investment advisory, InvestorKit, reveals the markets under the most pressure based on vacancy rates, supply levels, rental yields, affordability, and long-term demand. While rental growth has moderated compared to previous years, regions in Western Australia, South Australia and Queensland continue to lead the country. InvestorKit has identified Unley in Adelaide as a standout suburb for future rental growth, with its median house price of $1.4m making renting significantly cheaper than buying, even with anticipated rate cuts. It also highlights Mundaring in Perth, which has seen rents surge 69 per cent over the past four years, combined with persistently low vacancy rates and limited new supply. In Brisbane, Loganlea, The Gap, and Wynnum-Manly are tipped to see continued rental growth due to their relative affordability compared to house prices and a lack of new housing supply in these areas. MORE: Sold in 12 minutes: Fund manager's $17.5m penthouse pay day InvestorKit CEO Arjun Paliwal said despite interest rates falling, housing supply was still well below demand, which would keep upward pressure on rents in 2025 and beyond. 'Australia's rental crisis has now entered its fourth year and while there has been some relief, for example, national 'for rent' listings and vacancy rates have improved slightly, both metrics remain significantly below their pre-Covid levels,' Mr Paliwal said. 'This is not a temporary issue. It is a chronic condition driven by long-standing structural problems: a sustained lack of private rental supply, limited diversity in rental options, insufficient social housing, and an ongoing shortfall in new housing supply that cannot be quickly resolved.' The latest vacancy rate data from SQM Research reveals the national vacancy rate held steady at 1.2 per cent in May, down from 1.3 per cent in April. Nationally, combined rents average $649 a week, ranging from a high of $854/week in Sydney, to $543/week in Hobart. SQM Research managing director Louis Christopher said it was likely the nation would see 'ongoing elevated rents for a long period of time', until the tenancy demand/supply ratio was more balanced. 'That's not likely to happen until such time as we experience a slow down in population rate and a meaningful increase in new dwelling completions,' Mr Christopher said. REGIONS WHERE RENTS ARE SET TO CONTINUE TO RISE 1. Unley, Adelaide 2. Mundaring, Perth 3. Loganlea, Greater Brisbane 4. The Gap - Enoggera, Brisbane 5. Wynnum - Manly, Brisbane 6. Wyong, Greater Sydney 7. Hobsons Bay, Greater Melbourne 8. Hobart - North East, Greater Hobart 9. Bathurst, NSW 10. Dubbo, NSW 11. Inverell - Tenterfield, NSW 12. Tamworth - Gunnedah, NSW 13. Goulburn - Mulwaree, NSW 14. Albury - Wodonga, NSW/Victoria 15. Bendigo, Victoria, 16. Devonport, Tasmania 17. Rockhampton, QLD 18. Toowoomba, QLD 19. Geraldton, Western Australia 20. Albany, Western Australia
