Tenant demand grows despite rents dipping in 4101
While plenty of media and market talk focuses on the looming supply of new apartment projects in our neighbourhood, little gets said about the strength of demand. On our count there’s 1510 new rental dwellings to be offered to this local market over the next 12 months (you can see the full details at our blog www.SouthBrisbaneBuzz.com) and landlords need to prepare for this. However the positive news is that tenant interest in our properties is also growing strongly. The latest report from the Real Estate Institute of Queensland showed the inner-Brisbane vacancy rates actually tightened slightly in the June quarter, down to 3% which they rate as a “healthy” market.
The latest Residential Tenancies Authority data is now out and while postcode 4101 rents (median 2 bed apartments) dipped $10 to $510 per week in the June quarter, across Brisbane’s inner-city there was a $5 rise. Over the past year we’ve seen almost 500 rental homes added to the 4101 rental supply (a 9% increase) but the market has absorbed these new homes in fairly short time. So there’s no doubt South Brisbane investors need to stay competitive on rents, do those small renovations and provide their tenants with good service. But they should also take comfort that the lifestyle on offer in this area is enormously popular. Residents want to live here in big numbers and, while there might be bumps along the road for rental returns, there are still some positive signs in this market.
If you would like a rental appraisal for your property call our Property Management team on 07 3214 6899 or email email@example.com
Note: RTA stats quoted here cover all of postcode 4101 including West End, Highgate Hill and South Brisbane.