How the events of the past 12 months have impacted the Brisbane Rental Market
The Brisbane property market has experienced record growth across all sectors over the past 12 months, holding the position of the fastest growing capital city property market in the country. Interstate migration, low availability of stock and development delays have attributed to the demand for accommodation, the under supply extending to the rental sector of the market. The average house rent across Brisbane has hit an all-time high of $590 per week, whilst apartments are asking a median of $420 per week, producing the steepest annual increase in nearly 15 years.
The Sunshine State is the place to be!
It seems that everyone wants to move to Queensland, the Sunshine State recording the highest population growth across all Australian capital cities. A large portion of this growth has been due to interstate migration, majority coming from the southern states of Victoria and New South Wales. Initially making the northerly move were those seeking fewer lockdowns and a more relaxed lifestyle, now also accompanied by those who have been displaced by the recent floods. Predicted to gain a further 20,000 migrants from interstate each year over the next four years, Queensland’s population is expected to surge by more than a quarter of a million people by 2025.
A lucrative time to be a property investor
After the oversupply of new dwellings from 2016 were absorbed, Brisbane vacancy rates continued to dwindle and are now sitting at a nine-year low of 1.1%. New residential developments have been stalled due to building material delays and availability of tradespeople, a knock-on effect from the pandemic’s impact on supply chains and the government stimulus offered to first homebuilders. Whilst rental prices have risen for 15% over the past 12 months, Queensland remains one of the most affordable states to purchase property in, offering investors an attractive median return of 3.3% for houses and 4.7% for apartments.
Looking to the future
Whilst there is no crystal ball to help us foresee the future, property experts are suggesting that the demand within the Brisbane rental market is not set to stall just yet. Owner occupiers have recently become a lot more active in the market, with first homeowners taking advantage of low interest rates and existing homeowners adding to their portfolios by purchasing holiday homes as working situations become more flexible. The 2032 Brisbane Olympic Games and other major infrastructure projects will continue to produce ongoing employment opportunities, further tightening the Brisbane rental market, putting pressure on rental prices and the need for available accommodation.