Inner south rental market update
The latest stats for the December quarter show a mixed bag for the 4101 postcode. Median house rents jumped yet again, now $470/week for a 3 bedroom, up $50 on the September quarter and up 18% for the year. There aren’t enough houses to match demand. Apartment rents were flat, remaining at $450 per week for a 2 bedder. This is a sign that rent rises are cooling a little, in our opinion often as much due to cautious landlords as tenant demand easing.
Apartment rents were still up 7% for the year and this remains Brisbane’s most expensive rental area outside the CBD. It’s important to use some caution with the stats as many new apartments have been released to the local rental market in the past couple of years. More recent months have seen less of this ‘transition’ in the suburb so we expected reported rents to flatten as a result. Supply of rentals in the area actually dropped by 26 homes during the quarter.
Looking ahead we’d suggest rents will continue to grow as the suburb’s popularity is definitely on the rise and we anticipate very few new homes being completed over coming months. In fact strong owner-resident interest may even further reduce the total available rental pool.
Note: RTA stats quoted here cover all of postcode 4101 including South Brisbane, Highgate Hill and West End.