Brisbane rents flat for an entire year: Domain Group
08th Oct 2015
Tenants in Brisbane have weathered the year well, with no increase in the median rent for houses or apartments, new data shows.
The median weekly asking rent over the year to September was flat for houses and units at $400 and $370 a week respectively, Domain Group data released on Thursday shows.
Brisbane’s lack of rental growth spelled “good news for tenants who want to move into home ownership”, Domain Group senior economist Andrew Wilson said.
“It’s working in the favour of tenants – there’s a lot of choice for property in Brisbane, which is keeping a lid on rental growth,” Dr Wilson said.
He said Brisbane wouldn’t see rental growth any time soon, with vacancy rates at 2.5 per cent underpinned by a healthy balance between supply and demand.
Where prospective home buyers in Sydney and Melbourne have had to save hundreds of dollars a week to keep up with soaring prices, Brisbane house prices grew just 1.6 per cent in the year to March.
“They don’t have that savings anchor with rising rents and prices,” Dr Wilson said, calling it one of the best markets for first home buyers.
Despite the flat rents, there’s little suggestion investors will be put off.
Rental yields in Brisbane are some of the highest of all capital cities, at 4.93 per cent for houses, second to Hobart.
Gross rental yields for units remained flat over the year, though softened by 0.3 per cent over the quarter, to 5.07 per cent.
Managing director of Grow Property Group in Newstead, Darrin Leung said the outlook for Brisbane’s first home buyers is bright, particularly when compared with other capital cities.
“Brisbane enjoys magnificent growth potential and growth business corridors as opposed to other capital cities where it’s difficult to even enter the property market,” Mr Leung said.
However, he said investors looking to buy should consider what tenants value in a rental property to ensure it remains an attractive investment proposition and to minimise future vacancies.