Toowoomba rental prices set to increase by average $30 per week amid supply shortage

Tenants already tightening their belts in the Garden City will be feeling even more rental pain over the next year. Property experts have revealed how much rent will go up next year.

Toowoomba renters should expect to pay an extra $30 per week on average over the next 12 months, with property experts warning shortfalls in housing will continue to heap pressure on residents’ leases.

Toowoomba branch president of the Real Estate Institute of Queensland Daniel Burrett says 90 per cent of renters have experienced the initial “corrective increases” of between $40 and $80 over the past 15 months.

His comments come after new data from REA Group revealed the average advertised house price for rent in Toowoomba in July was no lower than $350, with some suburbs like Middle Ridge were seeing median prices of $500 per week.

communities like East Toowoomba (19 per cent), Mount Lofty (18.4 per cent) and Westbrook (15.6 per cent) had seen the sharpest increases in just 12 months.

If Mr Burrett’s prediction is correct, tenants will pay an extra $1500 a year in rent.

Mr Burrett said tenants already grappling with major rent hikes should be prepared for smaller but still significant jumps when their lease was up.

“The corrective increases have already happened, I don’t think we’ll see $50 increases again, but it would not be untoward if rents increased over the next 12 months by $30, because supply hasn’t increased,” he said.

“We’ve seen $40 to $80 a lot, that’s been the correction, but I can’t see that happening again.

“Tenants are fighting their hardest to stay and renew their leases (as a result).

“Let’s say a house is was worth a $50 increase, well a lot of landlords realise they have a good tenant so they’ll offer a $30 increase instead.”

Mr Burrett said the city’s vacancy rate of below one per cent was the main reason behind skyrocketing rents, pointing out recent moves from the Toowoomba Regional Council to free up developable land would not have any short-term impact.

“Council needs to release more land — the council has their heads in the sand and they don’t realise how bad the supply problem is,” he said.

“It is not a solution for the next 12 months, because you won’t have houses pumped out in the next 12 months (on the applicable land).

“It will work, but it will take time to develop — it’s going to take another two years before we have enough houses.”

Originally published as Toowoomba rental prices set to increase by average $30 per week amid supply shortage