Price drop: The Qld suburbs where rents have fallen

Queensland tenants struggling to keep up with rising rents rejoice, with new data showing the suburbs where rents have dropped by as much as 39.4 per cent in 12 months. See how your suburb was affected.

Sky-high rents in Queensland are finally starting to ease in some suburbs, with an inner-city Brisbane locale plummeting by more than 30 per cent in the past 12 months.

Regional areas have also recorded large drops in rental prices, one by nearly 40 per cent, while popular Brisbane areas have seen decreases between 7 and 9 per cent.

Wandoan saw the largest percentage decrease in the state, with median advertised rents falling 39.4 per cent in April compared to the same time last year, a saving of $168 a week.

Fortitude Valley house rents were down 30.7 per cent over the same period, with the inner city suburb also recording the largest drop in terms of real money, with the median weekly rent for houses falling by $230.

Renters in Flaxton on the Sunshine Coast could save $155 compared to the same time last year, while Samford Valley house rents have fallen by $150 a week, down from $1100 in April last year to $950 now.

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This Noosa Heads house is now listed for $1100 a week. It was listed for $1250 a week between April 30 and May 18 when it was dropped to $1200 a week and then $1100

Lake Macdonald and Doonan median house rents were $110 cheaper in April, while in Mount Ommaney renters could save $108 a week.

For Brisbane units, the biggest price drop was in the Grange, where the median asking rent fell $30 from $450 a week in April last year, to $420 now.

Median unit rents also fell by $5 in Darra and $3 a week in Mansfield and Manly.

The weekly rent for this Clayfield house was rent reduced to $680 for a “quick lease”.

The PropTrack analysis shows that median house rents were down in 104 suburbs across Queensland in April compared to the same time last year, while the median asking rent for units was down in 109 suburbs across the state.

But PropTrack economist Angus Moore cautioned that advertised rents could bounce around depending on what types of properties were coming onto the market at any given time.

“There are a few places where we’ve seen rents fall over the past year, however these are very much the exception and there aren’t many,” he said.

“We have seen a very mild improvement in rental availability in Brisbane in recent months, but I would stress mild.

“The rental vacancy rate has increased from 1.1 per cent a few months ago to 1.2 per cent in April.

“While that’s an improvement, it remains extremely tight.”

PropTrack economist Angus Moore

However, in a glimmer of hope for embattled tenants, rent price reductions were recorded right across the state, including four Cairns suburbs (Tully, Holloways Beach, Cairns City and Caravonica) and five Townsville suburbs (Oonoonba, Mysterton, Queenton, Richmond Hill and South Townsville).

Two Gold Coast suburbs – Worongary and Currumbin (houses) – also recorded a reduction in median weekly asking rents, while on the Sunshine Coast, median asking rents have fallen in nine suburbs.

This Mount Ommaney house was listed for $1200 in February, $990 in March and is now $950 a week

Code Property Group director Candice Gillies said that the Sunshine Coast had seen a “steady flattening” of the rental market over the past six months, with prices in some areas starting to reduce for the first time in two years.

She said the property management company was already seeing a “rental market correction”, with an increase in vacancies and vacant properties taking longer to lease.

“With over 730 rental properties under management, Code has been receiving 20-40 rental applications per property since late 2020, and is now seeing a steady decline, with only 1-2 applications received on some properties this past week,” Ms Gillies said.

“Accommodation is still in short supply where rental budgets sit under $500 per week, but without a doubt the mid and high end of the market is seeing a correction.

“With most properties now priced well over that and many sitting around $650-$800 per week, some property owners may have to make adjustments in the current climate to minimise the risk of their property sitting vacant.”

Listed for $1000 a week on May 4, this Currumbin house is now listed for $975 a week

A recent survey of more than 3300 Queensland property investors, conducted by the Real Estate Institute of Queensland (REIQ), canvassed sentiment towards some of the ‘hot button’ changes proposed in the State Government’s stage two rental law reforms.

REIQ CEO Antonia Mercorella said that while rent reductions were not an explicit question in the survey, there were “numerous” respondents who expressed that they were prepared to keep the rent at a lower-than-market rate for two reasons – wishing to keep current good tenants in place and in recognition of existing tenant hardship.

REIQ CEO Antonia Mercorella

“It was clear that a good long-term tenant was highly valued and many rental providers prioritised this over rental returns,” Ms Mercorella said.

“Despite the current challenging market conditions, it is not uncommon for lessors to be sympathetic to tenant circumstances and decide not to move rent in line with the market, and instead offer a modest increase, if they have the ability to do so.

“Often it comes down to when the lessor has purchased the property and what their own expenses are, as to whether they can absorb the increased market cost burdens themselves.”

This property at Sunrise Beach was first listed for $700 a week, then $675 and is now $650 a week

But while some suburbs are showing signs of easing, plenty more are still recording rising rents, with the same PropTrack data showing that some tenants are forking out up to $20,000 more a year to keep a roof over their heads in the suburbs worst hit by Queensland’s rental crisis.

Overall rents across Brisbane were up 15 per cent since last year, but parts of Queensland recorded staggering increases of up to 55 per cent during the same period.

Lifestyle markets of the Gold and Sunshine Coasts notched up the biggest dollar increases, with weekly rents for houses in Paradise Waters and Clear Island Waters up $400 since April last year — equating to an eye-watering $20,800 a year.

In the regions, rents in Castle Hill in Townsville went from $460 to $680 a week, while parts of Moreton Bay and Wide Bay also recorded big increases.

MORE: See the latest PropTrack Home Price Index

Originally published as Price drop: The Qld suburbs where rents have fallen