Real Estate by Owner – High Executive Rental Vacancies

Privatepoint is the for sale by owner ( FSBO ) and DIY real estate sales website for private real estate sale in Australia.

It appears that executive rental apartments (real estate greater than around $800 pw) are increasingly becoming vacant and are sitting on the market vacant for extended periods of time. This isn’t good for real estate investors who have often paid premium dollar for these exclusive apartments in sort after suburbs of major cities across Australia.

To highlight this problem, I was down at a local real estate office yesterday in Bondi and noticed that 70% of their rental apartments displayed in their shop window were leased. Out of the 30% left, around 3/4 of the apartments available were priced over $800 pw. So cheaper apartments are moving quickly but expensive apartments are not.

Why is this? Because most of the tenants of these exclusive apartments are executives and obviously the economy is affecting the companies they work for and the salaries they are receiving. Is this a sign of a recession looming?