Brisbane tenants enjoy steady rents again as supply stays high
Brisbane investors will have to get used to getting less from their rental as rent prices on houses stagnate for another year.
Popular blue-chip suburbs have recorded some growth, but downward pressure is present in most locations in the Brisbane area, according to the latest figures from the Domain Group’s rental and house price report.
Rents would be forced down by a combination of low migration, high unemployment and a large supply of rentals, leading to a more tenant-friendly market, said Domain Group chief economist Andrew Wilson said.
Brisbane’s median rent is steady at $450 per week, good news for tenants who do not face a lot of competition. Strong demand in the city’s inner suburbs had kept rents from falling, he said.
The best performing suburb in the past six months was Kenmore, just outside Brisbane’s inner ring. Domain Group data showed the western suburb’s rents grew 12 per cent to a median of $560.
Kel Goesch, principal of Brisbane Real Estate, said that was because the suburb offered a good landing pad for families moving to Brisbane.
“People who relocated from out of the city or the state, they tend to rent for the first six or 12 months,” he said. “Get the kids booked in, get the feet on the ground and find out what the purchasing situation is like.”
Mr Goesch said people were willing to pay a premium to live in areas like Kedron. “It’s a little bit further out but you get a lot more value for money,” he said.
Tenants Queensland chief executive Penny Carr said the market was looking up and down for both investors and tenants.
“What it says to me is the market for house is pretty balanced,” she said. “Even then you’re going to see some hot and cold spots.”
Ms Carr said a vacancy rate of 3.3 per cent meant the balance was slightly in favour of tenants. She recommend tenants shop around if they want to get a good deal and keep an eye out for locations where rentals stay vacant for a long time.
“What that might say to them is an offer a bit below the asking prices could succeed,” she said.
