The Road Ahead For Inner Brisbane Rental Market

Written by Bruce Goddard, Place Projects Place Advisory has analysed the rental performance of all suburbs located within five kilometres from the Brisbane CBD over the past 12 month period. We will discuss how Inner Brisbane’s rental market performed throughout 2016 and what Place Advisory expects to see in 2017. Vacancy Rates The most recent REIQ data indicates that vacancy rates in Inner Brisbane have increased to 3.7% for the September 2016 quarter. Despite being slightly higher in comparison to previous quarters, this equates to properties being vacant for just two weeks of the year. Percentage Change in Rental Values by Precinct: Past 12 Months. Source: Residential Tenancies Authority CBD Brisbane’s CBD remains to be the most expensive rental market for both one, two and three bedroom apartments. However, over the past 12 months median rents in the CBD have suffered. Median rental prices for two bedroom apartments saw the strongest fall in values over the past 12 month period, decreasing by 5.2% to $550 per week. One bedroom apartment rents fell by 4.8% whilst median rental prices for three bedroom apartments decreased by 2.6%. Apartment rentals in the CBD equated to 14% of all new bonds issued during the September 2016 quarter. West Apartment rentals in Brisbane’s western precinct accounted for 14% of all new bonds issued throughout the September 2016 quarter. Rental prices for one bedroom apartments in the western precinct saw 4.3% price growth over the past 12 month period – the only apartment type to experience rental growth. Two and three bedroom apartment rents declined over the period, decreasing by 3.6% and 4.8% respectively. East One bedroom apartments in Brisbane’s eastern suburbs recorded the strongest rental growth across all precincts, experiencing 5.2% price growth over the past 12 months. Two bedroom apartment rents softened by 3.8% whilst three bedroom rental prices decreased by just 0.2%. Apartment rentals in Brisbane’s eastern suburbs accounted for just 11% of all new bonds issued throughout the quarter. North Median rental prices for three bedroom apartments in Brisbane’s northern suburbs recorded 4.1% rental growth over the past 12 months, increasing to a median price of $642 per week. One and two bedroom apartment rents declined by 2.3% and 0.2% respectively over the past 12 month period ending September 2016. Brisbane’s north recorded the highest number of new rental bonds for the quarter, accounting for 40% of total bonds issued. South Brisbane’s Inner South precinct performed relatively well over the past 12 months, being the only precinct to record rental growth in all apartment types. One bedroom rents saw the highest growth, increasing by 3.6% to $345 per week, whilst two and three bedroom apartment rents increased by 0.7% and 1.6% respectively. What to Expect in 2017 Place Advisory expects that Inner Brisbane’s rental market will remain relatively strong throughout 2017, particularly for new apartments. Tenants are seeking well appointed apartments in high amenity locations with direct access to infrastructure. Although tenants are spoiled for choice, apartments are not sitting on the market for as long as expected.

The Road Ahead For Inner Brisbane Rental Market

Beyond Energy Efficiency: Cutting Carbon Property’s New Frontier

Mirvac Monopoly: BtR Pioneer Plots East Coast Domination

Keeping the Lights On: Growing Pains Jeopardise Industrial Boom

What’s Driving Pro-invest Push into ‘Underserved’ Micro-Apartments

Sydney Pub Market Rebounds After Post-Covid Lows

Fireside Chat | Inside GemLife With Adrian Puljich

Building Australia's Newest Airport: Multiplex

The Makers Of The Mondrian | Design, Vision And Delivery Behind One Of Australia’s Most Anticipated Luxury Hotels

Next Gen Now | How Emerging Developers Are Redefining The Game

GPT, CSC Winners in $1.72bn Sydney Skyscraper Tussle

Landmark Hobart CBD Block Sale Tops Expectations

Coronation 1000-Home BtR Scheme Greenlit at Erskineville

Melbourne Adviser Banned by ASIC Over Shield Master Fund

Commercial Real Estate Summit

Urban Leader Awards

Property Development Masterclass Series

Long Lunch Series