‘A landlords’ market’: Brisbane records steepest rent rises in city’s history

Brisbane has recorded the steepest rental price rises in the city’s history as it grapples with higher real estate prices, strong rental demand and a lack of housing.

According to Domain’s quarterly Rent Report, Brisbane has also experienced the highest annual increase of all capital cities in rental prices for both houses and apartments.

Brisbane’s rental prices have had a record-breaking growth spurt.Credit: Glenn Hunt

“Brisbane has recorded its eighth quarter in a row of rising house rents, and the steepest annual lift in the city’s history,” said Domain’s chief of economics and research, Dr Nicola Powell.

“What we’ve got is a very low vacancy rate, at 0.6 per cent, so it’s very much a landlords’ market, and it has created competitiveness with tenants.

“[The number of] renters per listing has also hit a historic level in the June quarter – 77 per cent higher than the five-year average.”

Powell said purchase prices were rising in Brisbane as demand for rentals intensifies with the return of international students.

Brisbane is booming.Credit: Rhett Hammerton

“The biggest boost though has been interstate migration, with the latest population statistics showing Queensland has had the strongest population growth in Australia, which is adding pressure to the rental market,” she said.

Amid a debate over the lack of social housing, Powell said affordability constraints were pushing people to rent apartments over houses.

Brisbane’s median rental asking price for houses rose 16.9 per cent in 12 months, while for units it rose 12.5 per cent. By comparison, Sydney experienced increases of 12.7 per cent and 11.7 per cent respectively, although from a higher base.

In Brisbane, quarterly figures saw median house rental prices go from $445 in June last year to $520 this year, while unit rentals went from $400 to $450 in the same period.

An analysis of the rest of Queensland found the median rent for both houses and units is now higher than those in regional areas in other states and territories, after the asking price for houses rose 19.1 per cent in 12 months.

Domain is owned by Nine, publisher of this masthead.

This week, Queensland Auditor-General Brendan Worrall found the Palaszczuk government was not building enough social and affordable housing, keeping an accurate waiting list, or managing existing stock properly.

On Wednesday, Premier Annastacia Palaszczuk blamed the crisis on higher interstate migration, supply shortages in the private housing market, and inflation.

Premier Annastacia Palaszczuk has defended her government’s response to the social housing shortage in Queensland.

“We’re building houses as quickly as we can, but we also have to compete with the private market,” she said.

Defending her government’s efforts to increase social housing stock, Palaszczuk said pressure on housing was occurring nationwide.

“Everybody is feeling this,” she said. “We have a short supply of the private rental market at the moment.

“We’ve seen the issues of people moving into Queensland and maybe purchasing a house where a family is living, and all of a sudden, that family has to go and find another rental property.

“This is not unusual. This is adding to our pressure.”

When asked if she understood the “degree of desperation” some families were experiencing, including some who had been on the waiting list for two years in her electorate of Inala, Palaszczuk said she did.

“I represent a social housing community, please do not say I do not understand this issue. That is incorrect and that is false,” she said.

Opposition Leader David Crisafulli accused the government of prioritising positive social media posts over a proper response to the problem.