The Brisbane rental market has experienced a substantial turnaround in recent months.
For some time, we’ve been hearing stories surrounding the undesirable state of Brisbane’s rental market due to an oversupply of developments and the resulting high vacancy rates.
However, this trend seems to be turning around, with figures suggesting a positive shift in the market.
These figures, from property valuation firm SQM Research, show rental vacancy rates in Brisbane dropped continuously from February to August 2018, and are now down to 2.8%, in comparison to 3.4% a year ago.*
Brisbane is rapidly becoming a landlord’s market, with vacancy rates down, and a multitude of reasons working in the city’s favour for the near future.
Interstate migration
Southerners fleeing Sydney and Melbourne’s exorbitant real estate market are relishing in the Brisbane rental market. Job creation and opportunities in Brisbane have increased, positively impacting the southeast Queensland economy.
The standard of living and housing affordability are huge drawcards for our southern counterparts, with Brisbane being one of the cheapest capital cities in which to rent in the country.
Housing completions
After years of growing pains caused by over-development, the city’s apartment values are expected to jump more than 6 percent in the next year, recovering by 0.6 percent this year alone.**
Brisbane has a unique drawcard of high-end, affordable rental apartments, many of which were built in oversupply in recent years, however are now appealing to interstate migrators.
Place New Farm rentals business development manager, Ben Croft, elaborates.
“We are finding that coming in to the tail end of the year, there are plenty of tenants looking to secure a home before Christmas. The southern migration from Sydney and Melbourne is certainly fuelling the high-end space of the market, with more opportunities and better value to be found in Brisbane.”
If you’re interested in learning more about the investment potential of Brisbane’s top rental suburbs, we recommend having a look at Fortitude Valley and downloading your free suburb report here.
If you’re looking to purchase an investment property, check out Place New Farm's properties for sale here.
Sources:
* SQM Research
** CoreLogic Property Data