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Rental prices falling

By johnboy - 10 October 2013 25

If the previously unprecedented sight of “for rent” appearing on Canberra’s streets wasn’t enough the ABC has data on the long awaited holes opening up in the market:

The latest Australian Property Monitors report shows median asking rents for houses in Canberra dropped 3.6 per cent, from $480 to $463 a week, in the September quarter.

Unit rents were down 1.7 per cent dropping from $410 dollars to $403 a week.

That is the largest drop in any capital city.

For the 12 months to September, unit rents are down 6.3 per cent and house rents are down 3.6 per cent.

Weep oh renters for the financial losses of the investment property owners!

What’s Your opinion?


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Rental prices falling
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MissChief 6:13 pm 11 Oct 13

Grrrr said :

MissChief said :

Median price is the middle of the range with highest and lowest prices removed

No, it’s not – the median is the middle of ALL values. Also, outliers (as extremes of high and low values are called) do not affect the Median as strongly as the do the Mean (the “average”) which is precisely why it’s used in the case of realestate.

It could be that the median this quarter is less because there are more 3 bedroom houses than 4 bedroom houses being listed, or that the quality/inclusions are less. The same goes for units.

Or, it could be that there are more 4 bedroom houses and less 3 bedroom houses and the relative to the number of rooms, rent has dropped futher. It’s not unreasonable to assume that, given that the sample set (number of houses on the rental market) is large enough that such variation is insignificant.

Though feel free to collate statistics on a per-bedroom basis, after you’ve revised Statistics 101.

Yes, you’ve reiterated my point about making assumptions. You cannot be sure what you are being told with these statistics. What is it they say, “Never assume, it makes an ass out of u and me?”… except I’m warning about assumption so I guess it only makes an ass out of you.

Ronald_Coase 4:59 pm 11 Oct 13

Grrrr said :

MissChief said :

Median price is the middle of the range with highest and lowest prices removed

No, it’s not – the median is the middle of ALL values. Also, outliers (as extremes of high and low values are called) do not affect the Median as strongly as the do the Mean (the “average”) which is precisely why it’s used …

Hmm, yeah nah. The median is not affected at all by outliers except in very trivial cases with even sample sizes, but I’ll happily stand corrected if I missed that bit of Stats101.

arescarti42 3:58 pm 11 Oct 13

SheepGroper said :

chewy14 said :

the fact that the vast majority of negatively geared properties come from existing housing stock.

I tried searching for information about percentage of investment properties being new and couldn’t find anything – where did you get your information from? The best I could do was ABS statistics about percentage of population that own rental properties, age etc breakdowns, property type breakdowns, nothing on whether the rental properties were new or second hand.

RBA lending commitments is the data you want.

chewy14 3:54 pm 11 Oct 13

SheepGroper said :

chewy14 said :

the fact that the vast majority of negatively geared properties come from existing housing stock.

I tried searching for information about percentage of investment properties being new and couldn’t find anything – where did you get your information from? The best I could do was ABS statistics about percentage of population that own rental properties, age etc breakdowns, property type breakdowns, nothing on whether the rental properties were new or second ha
nd.

The RBA produce statistics on it. You can find a nice graph (among some others) in this article:
http://www.macrobusiness.com.au/2012/10/negative-gearing-exposed/

SheepGroper 2:58 pm 11 Oct 13

chewy14 said :

the fact that the vast majority of negatively geared properties come from existing housing stock.

I tried searching for information about percentage of investment properties being new and couldn’t find anything – where did you get your information from? The best I could do was ABS statistics about percentage of population that own rental properties, age etc breakdowns, property type breakdowns, nothing on whether the rental properties were new or second hand.

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