The rental market’s been so strong for so long that many of us probably thought rents would be maintained despite the economic slowdown. In this past June quarter they have dropped across Brisbane (albeit rents in the inner city suburbs are still up slightly) and we’d suggest this is largely due to caution from landlords rather than any major change in the supply/demand equation.
Here’s a copy of today’s media release from our Research team:
New data on Brisbane’s rental housing market was released today and it shows the city’s rents have dropped for the first time in more than 7 years.
According to the latest Residential Tenancies Authority statistics the June quarter saw median weekly rents drop by $10 for a 2 bed apartment.
Bees Nees Research Managing Director, Rob Honeycombe says the drop from $360 to $350 per week shows tenants are often getting small discounts from landlords. He says many are nervous about having a vacancy.
“Property owners are just more cautious and focused on economic issues, they don’t want to have any ‘downtime’ between tenants and they’re dropping rents quickly to avoid that”, Mr Honeycombe said.
Mr Honeycombe said the Residential Tenancies Authority (RTA) stats showed this was the first drop in rents on records held since March 2002.
“Three bedroom houses were flat with no change on the March quarter median of $370 per week. There’s still been a small increase on most rents from a year ago but it’s a bit of a breather for tenants at the moment”, Mr Honeycombe said.
“Normally if you see prices drop you’d expect supply must have gone up. That’s not the case here – Brisbane added just 275 homes to its rental pool in the June quarter, now at 122,094 homes.”
“This drop is all about caution from landlords.”