With a forecast of impressive population growth and many infrastructure projects in the pipeline, Brisbane’s buoyant property sentiment remains, positioning it as a key market to invest in.
In the recently released CoreLogic Quarterly Rental Review, numbers revealed that all Australian capital cities saw an increase in rental values over the latest quarter and year-on year, as did the individual house and unit markets.
Cathie Crampton, Head of Property Management at Place, says that continued supply and demand pressure is what is keeping the growth in the rental market going.
“With vacancy rates sitting at sub 0.5% in many markets, rent increases continue to be applicable in most situations. In January 2022 we saw half the number of rental properties come to market compared to January 2021, further highlighting the low levels of available stock. Demand is showing no sign of slowing down, so if you have been considering investing it’s a wonderful time in both [the house and unit] markets. Yields are healthy and vacancy rates are at an all-time low.”
Cathie says that savvy investors should keep their eye on the unit market. “Currently there’s a record gap between house and apartment values in Brisbane, presenting a great buying opportunity. The reality is that many tenants won't be able to secure a house and will next consider a unit, increasing demand in this sector and eventually the rental return.”
Rental yields have decreased in Brisbane as property prices have increased at well above average rates on a monthly basis however, it remains in a healthy range as seen in the key statistics table. Now that values are starting to rise at a lower monthly rate, this may start to increase again. Rental yield in Brisbane is still significantly higher than that of Sydney in Melbourne, which currently sits in the mid 2% range.
Affordability in Brisbane when compared to Southern states is another key factor that makes it such an attractive place to invest. Though there’s a record price-gap between houses and apartments, it’s the highest median apartment value we’ve ever seen. None the less, this record price is 42% and 24% lower than that in Sydney in Melbourne, respectively, again highlighting the great investment opportunity.
This article was originally published in Place Insights: Property Market Insights from Brisbane's Real Estate Agent. Follow the link below to access more content like this and receive it direct to your inbox every month.
