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Brisbane Rentals

Tight Market Puts Pressure On Rents – July 2012

If information issued by the REIQ is anything to go by, the current vacancy rate for rental properties in Brisbane is currently at 2.1 per cent. This indicates a pressure on properties on the rental market, resulting in higher rental yields being achieved in a number of suburbs across the Queensland city. Some of the suburbs experiencing strong rental demand include New Farm, Newstead, Teneriffe and West End.

This is believed to have been caused by a lack of affordable housing available to low-income earners looking to enter the property market and purchase their first home. Instead they have to remain renting until housing prices in Brisbane drop or the income of the potential buyers increases. This pressure is being experienced by many renting families that claim the cost of renting has increased alongside common utilities such as power, water and gas, making living close to the Brisbane CBD an expensive option, that some families are revising.

“If it wasn’t for our kids being settled in school with only a few years to go, our family certainly wouldn’t be living so close to the city.” Says Jackie from Clayfield, “Friends of ours have a much higher standard on a similar income in fringing areas like Redcliffe!” Many Brisbane property management companies have reported having to recommend different locations to suit family budgets as certain Brisbane suburbs become somewhat unaffordable for low-income households.

Recent data suggests that some suburbs are becoming highly populated with tenants and are experiencing a significant decrease in owner occupancy levels. There are a number of inner Brisbane suburbs that have exceptionally large numbers of rental properties, according to data sourced from RP Data, indicating a popular turn toward Bowen Hills, Fortitude Valley, Spring Hill and South Brisbane.

These suburbs are seeing an increase in high density living with highrise development growing at a rapid pace. Developers have seen the potential in these Brisbane suburbs for many years and the suburb is seeing these property developers act at a rapid pace to capitalise on the areas potential. Some have considered the inner suburbs to be untapped with Development Applications still on the rise. This may offer some comfort for renters with pressures potentially being eased as more properties become available to the market and are purchased by investors.