Brisbane’s Rental Market Slowing?

Grow Property Group Managing Director, Ayda Shabanzadeh, highlights some of the reasons why Brisbane’s rental market is slowing.

Right now, Brisbane’s rental market is unlike any other in the country. As renters in Sydney and Melbourne struggle to find affordable housing because the market’s so competitive, Brisbane residents aren’t facing similar hardships. So why is finding a rental easier up north? A huge factor impacting the rental market is the current stage of the property cycle. Put simply: interest rates have made buying property a more appealing and attainable option.

With the average price of houses and units in Brisbane lower than other capital cities, the dream of becoming a homeowner is more realistic and achievable. Through 2015 and into 2016, this has lowered vacancy rates on inner-city apartments. For many, purchasing a home is a smarter and more sustainable option than renting long-term. As such, landlords are seeing residents breaking their lease or choosing not to renew their tenancies increasingly regularly. Furthermore, last year also saw the completion of over 30,000 new apartments in Brisbane’s city fringe and surrounding areas. Many of these have been purchased by overseas investors, who plan to rent them out to locals to make a profit.

Given there’s so many rental options available, Brisbane residents expect more bang for their buck in the form of amenities, accessibility, outdoor settings and extra rooms in order to commit to a rental property. And they’re finding it too. The old economic theory of supply and demand has resulted in higher quality rentals becoming more affordable and to garner business in a competitive market landlords are dropping prices to attract tenants. It’s a wonderful time to purchase property across Australia, but if becoming a homeowner is out of reach for now, take comfort in the fact that in recent times there hasn’t been a better time to be a renter in Brisbane either.