27 January 2009
Letter to the Editor
Business Age
Via Email: letters@theage.com.au
The Editor
I refer to the article in today’s The Age, entitled "Agents accused of hyping up rental crisis to lure buyers".
Each month the Real Estate Institute of Victoria Ltd (REIV) surveys member real estate agencies that manage rental properties across the metropolitan and major regional areas and has done so for many years.
The survey asks how many rental properties are on the agency’s rent roll and how many are currently vacant and available for immediate rent. The survey sample size is usually between 50,000 and 60,000 properties, which is about 15 per cent of the total number of rental properties in Melbourne. The REIV vacancy rate accurately measures the vacancy rate at any given point and, importantly, also measures the change in the vacancy from month to month.
Mr Christopher’s company, SQM Research, uses a completely different methodology.
SQM Research compares the number of rental properties advertised on internet property portals, with an estimate of the total housing stock available based on the ABS 2006 Census.
While this measure may give some indication of available rental at a given time, it incorrectly assumes that all properties advertised on the internet are currently vacant and available to rent immediately.
The REIV would be the first to welcome an easing in the vacancy rate, however, our statistical and anecdotal evidence suggests this is not happening. Irrespective of Mr Christopher’s views, readers will form their own opinion on which vacancy rate more accurately reflects current market conditions.
Yours sincerely
ENZO RAIMONDO
Chief Executive Officer
