Rent record: ‘Largest yearly increase in rents of all markets’
Brisbane is officially the nation’s toughest rental market, with regional Queensland not far behind. WHAT HAPPENS NOW?
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Brisbane is now officially the toughest rental market in Australia after logging the highest annual rise in weekly prices in the country, with regional Queensland not far behind.
The latest PropTrack Market Insight Report, out Thursday, found median weekly rental prices in Brisbane increased at the fastest year-on-year pace on record in the September quarter, rising a record 14.1 per cent annually.
PropTrack director economic research Cameron Kusher said the result “is the strongest annual rate of rental growth on record and the largest yearly increase in rents of all markets across the country”.
Regional Queensland figures were not far behind with a 12.9 per cent surge in median weekly advertised rents over the year to September, sitting at a $480 median for all dwellings.
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Brisbane’s median weekly rent overall is just $5 a week higher at $485 a week, but house rent has climbed to $525 while units were at $430 – both of which were expected to keep rising over the next year given how tight rental conditions are across South East Queensland.
“I think the rental market is going to get tougher before it gets better,” Mr Kusher said.
“There’s a real dire lack of stock, the number of rentals coming onto the market is relatively low. Now international borders are opening, people are coming back, and there’s no easy fix.”
The rise comes as a Compare the Market survey warned rising rents were having a significant impact on Queensland families, with 60 per cent seeing an increase in the past 12 months, well above the national average of 45 per cent.
Compare The Market spokesman Chris Ford said the average rental increase in Queensland in the past year was $44 a week, compared to the national average of $38.
“It’s incredibly tough for all Australians but especially for Queenslanders right now because of the influx we’ve had through the Covid period,” he said.
“Increased competition in the rental market is hurting a lot of Queenslanders. Unfortunately it looks like it will only get worse as we could see landlords passing on increases they’ve had.”
The PropTrack report said house rents grew at a significantly higher pace than units in Brisbane in the past year, up 16.7 per cent compared to 7.5 for units. A large part of that surge was driven by four-bedroom house rents which jumped a whopping 15.8 per cent in the 12 months to September with three-bedroom houses not far behind, up 15.1 per cent.
Mr Kusher said the difference between house and unit rents was $95 in Brisbane now – a figure that’s almost double the national $50 gap which is the widest differential on record.
“I do see the demand for houses easing a little bit and the demand for units picking up given the gap between them is almost $100.”
Theresa Fitzgerald of Theresa Fitzgerald Property Management New Farm said the market was already swinging towards units in Brisbane, especially close to universities and in the inner city with the return of international students.
“I’ve been in the industry 37 years. We’ve never had such a shortage of properties. Things aren’t as busy as they were (earlier in the year), but certainly we’re finding it’s still strong. In Toowong we had 15 people turn up for a one bedroom fully furnished apartment. We rented it to a couple and they move in on Monday.”
She said the unit at Toowong was $370 in July and has just rented for $480 a week.
Brisbane househunters Nick and Jess and their baby William (surname withheld) were among those inspecting rental properties in the inner city midweek after listing their Karana Downs house for sale.
“We’re looking to rent for now while we sell our house and then buy again later,” Jess said. “This is our first inspection, rent-wise.”
Nick said the Red Hill area “just seems really affordable compared to other areas. We’ve been looking around Moggill, Anstead and they’re all up around $1,000 a week. The three and ones (3 bed, 1 bath) around here are all around the $650 mark”.
“It’s a pretty draining process selling and buying at the moment. The market is pretty hot which is why we’d like to rent for a bit to let it cool down, then we’ll assess. It’s still very much a seller’s market. It’s a good time to sell but there’s still another 12 to 18 months for it to be a bit more favourable as a buyer.”
Mr Ford warned that 64 per cent of Queenslanders in the survey now found rising rents hindering their ability to save for the future – “an alarming stat when prices are rising across the board”.
“If those tenants are looking to save their own little nest egg for their home deposit, they’re finding they can’t do that. They’re not just seeing increases in their rent, it’s their groceries, fuel, and unfortunately there doesn’t look like there’s light at the end of the tunnel right now.”
He said Queenslanders struggling needed to do their own market research, see if any laws covered them, negotiate with landlords and see if there are any improvements needed in the property that might stop rent increases.
“We don’t want to see Queenslanders have to drain their savings to cover these daily expenses.”
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