Brisbane house rents surged to a new record high of $480 a week following a 4.3 per cent increase over the quarter, or $20 according to Domain’s latest Rental Report.
This is twice the pace of growth recorded in the prior quarter and is the largest increase in 15 years.
Unit rents increased another $10 over the quarter to a new record high of $420 a week.
There is a record rent price gap between houses and units.
All regions across Greater Brisbane are at record high house and unit rents.
Domain reports that Brisbane house rents have achieved a record-breaking six consecutive quarters of rising asking rents, providing landlords with the longest period of continuous rental growth in Brisbane’s history.
Brisbane house rents have risen more than double the rate of units over the past year.
Also asking rents have risen at a faster annual pace for rentals with more bedrooms, both for houses and units.
Dr. Nicola Powell, Domain’s Chief of Economics and Research said:
This reflects the desirability for space from those able to work from home, but also provides an insight into demand demographics.
People in the prime of their working years are the biggest interstate group moving to Brisbane, many have young families in tow, relocating for career opportunities, university education, affordability, and lifestyle.
Tenants will find competitive rental conditions across Greater Brisbane, although inner Brisbane offers the highest vacancy rates and therefore a greater chance of securing and negotiating a lease.
Overall, vacancies remain close to a multi-year low providing little choice and strong grounds for further rental price hikes.
Rental affordability is a growing concern, particularly for lower-income households. Investors are returning to the Brisbane market to take advantage of these new trends – this should help to slow down rent growth.
Weaker investment activity interrupted the flow of rental properties over the last few years.
However investors are back in the market with the share of home loan values for investment reaching the highest since 2019.
This will boost supply and is likely to have helped to slow rental price growth over the December quarter.
No doubt competition to secure a rental will escalate once borders reopen and international students, new migrants, and expats look for accommodation.
This will then be further strained by demand from COVID escapees moving from the southern states.
Source: Domain Rental Report
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