Posted by Rob Honeycombe on 31 October 2007
Brisbane’s rental market is shrugging off pressure from increased demand, with rents rising only steadily across the inner city. Latest stats from the Residential Tenancies Authority show rents are still growing, but at a slower rate than last year. The RTA tracks rents for the 21 suburbs around the CBD and shows median rents for a 2 bedroom apartment in the area grew just $5 per week over the past quarter to $385.
That’s up 7% for the past 12 months, but with an increase of 16% recorded in the previous year it appears our market’s now flattened slightly, defying predictions of continued record growth. We know our population’s growing and a quick drive through our city shows very few residential buildings under construction – so where’s the boom? Our own view ‘on the ground’ is that affordability is now cutting in and providing something of a ceiling on rent rises. There’s only so many couples that can afford $480 in rent (the new median for a 2 bed in the CBD and Spring Hill) and despite their creativity with multiplying mattresses, some of the share households max out at 5 people per apartment! While the threshold’s still pushing upwards there’s a definite thinning of enquiry once asking rents reach $500 or thereabouts.
Owner-residents are continuing to move into the city and with some larger CBD buildings converting to short-stay tenancies (often becoming badly run equivalents of small hotels), rental supply is being cut even further. Over the past year the total bonds held for rental properties in the inner city has grown by just 967 properties (or 3%) and in many suburbs there’s actually been a reduction. Less properties, more tenants. So further rent rises will have to come.
Investors still have plenty of cause to celebrate as the median rent for an inner city 2 bedroom apartment has risen 38% ($105/week) over the past 3 years. But clearly the growth rate couldn’t keep up its pace indefinitely.
If you’d like to see what’s happening with median rents in your area go to www.WhatRentMyHome.com.au for free, easy access to rental stats. This is a new site we’ve launched and you don’t need to log your name, email or any other details to get all the info.
Tags: Brisbane housing supply, Brisbane rents, population growth Brisbane, Residential Tenancies Authority
Posted in Brisbane landlords, Brisbane's rental market | No Comments »
Posted by admin on 31 October 2007
In former Premier Joh Bjelke-Petersen’s day the count of cranes on Brisbane’s skyline was the simplest measure of progress. Today of course you need to look a little lower, with much of the major infrastructure works now below our city’s streets. The CBD currently looks like a giant bunny has been burrowing about with the new Inner Northern route been built to take our buses below ground, and King George Square being rebuilt in the process. The biggest rabbit warren of them all of course is the North South Bypass, a mammoth $3billion project that will soon see two boring machines disappear under the city. BCC are holding a limited open day this Sunday for a chance to see the 12m diameter borers up close and 4000 people quickly snapped up the passes. These oversized drill bits are more than 200m long and will each chew through 20 metres of rock a day.
Back above ground and construction’s also started on the $63million Tank Street bridge (pictured left), linking North Quay to the Kurilpa Point corner of South Brisbane for pedestrians and cyclists. The bridge will feature a continuous all-weather canopy for its entire length and is planned to finish in late 2009 to coincide with Queensland’s 150th birthday celebrations. Architects Cox Rayner are behind the design again, having worked on the neighbouring Goodwill Bridge that’s now 6 years old. That one cost around $33million and while the new crossing is more complex it does give you some idea of cost rises in recent times.
Tags: Brisbane City Council, Brisbane traffic, Goodwill Bridge South Brisbane, King George Square Brisbane, Northern Busway Brisbane
Posted in Brisbane CBD, Brisbane's future & new infrastructure, South Brisbane and South Bank | No Comments »
Posted by admin on 30 October 2007
Rodney and Wilma are woken at 3 o’clock one morning by a loud pounding on the door, with a drunken stranger standing in the pouring rain. “Give us a push” says the swaying man. “Not a chance,” says the husband, “It’s three in the morning.” He slams the door and returns to bed.
“Who was that?” asked his wife. “Just some drunk guy asking for a push,” he answers. “Did you help him?” Wilma asks. “No I did not. It’s three in the morning and pouring with rain outside. His wife said, “Don’t you remember 3 months ago when we broke down and those two guys helped us? I think you should go help him, and you should be ashamed of yourself.”
Rodney does as he’s told, gets dressed and goes out into the rain. He calls out into the dark, “Hello! Are you still there?” “Yes,” comes the reply. “Do you still need a push?” calls out Rodney. “Yes please.” comes the reply from the darkness. “Where are you?” asks Rodney. “Over here on the swing,” replies the drunk.
Tags: bad but clean jokes
Posted in just for fun! | No Comments »
Posted by Rob Honeycombe on 10 October 2007
Many apartment buyers insist on finding a place with an ensuite, convinced that it’s a key to both “liveability” and that holy grail of real estate, maximum capital gain. There are plenty of advantages in having a second bathroom and in a 3 bedroom apartment we’d suggest it’s pretty much a requirement. In shared 2 bedroom households the idea of a bedroom and adjacent bathroom for each occupant is popular, and makes living with a cookie-thieving, loud music playing flatmate that bit more tolerable. But with so many couple and lone person households we wonder whether the extra cost of that second bathroom really ever pays for itself?
In rental returns the answer is – probably not. As examples we’ve looked at two inner city apartment buildings, one in the CBD and one in Spring Hill, where there are 2 bedroom apartments of very similar size, view and design. In each case one has an ensuite and the other doesn’t. And the rents? In Spring Hill it’s $420 with one bathroom and $450 right next door with a second bathroom. The CBD tower achieves $560 for a 2 bed, 1 bath apartment and $600 for its ensuited neighbour.
Any new apartment in Brisbane’s inner city now needs to be priced at around $7000 per square metre to be viable for development, and more of course in prime locations. So for an 8m2 ensuite (which is one of the most expensive areas to build) there needs to be a price premium of at least $60,000 to justify inclusion in the apartment. To earn a 5% gross return to an investor that’s $57 per week extra rent. Possible but not likely.
And how about price? In one CBD building we’ve seen two apartments, side by side, sell over the past month – one for $490,000, the other for $620,000. The difference? Around 15m2 extra space including an ensuite! In the same way buyers still flock to big backyards in the ‘burbs, many inner city apartment purchasers remain determined to buy with an ensuite, regardless of whether they actually need it. There’s a premium priced into the market that we believe mightn’t be retained in the future as affordability – for both buyers and tenants – causes a re-think on surplus bathrooms.
And with future water restrictions we probably won’t be able to use the shower anyway!
Do apartments need a 2nd bathroom? Tell us what you think!
Tags: Brisbane home design, Brisbane rents, household types, Spring Hill Brisbane
Posted in Brisbane CBD, Brisbane's rental market, Brisbane's sales market, Spring Hill, architecture and renovation, trends in Brisbane property | No Comments »
Posted by admin on 10 October 2007
Soon we’ll have the dog, 3 kids and the week’s washing all thrown into the one tub of water, and pulling the plug will water the garden and run the toilets! Level 6 water restrictions have now been released for public comment prior to an undisclosed start date, and they carry the threat of fines up to $1050 and flow restrictors being clamped onto your water pipes.
When Level 5 started in April the average South East Queenslander used 171 litres per day and as of last week that’s down to 130 litres. But with the dams still around 21% of capacity the state govt’s new rules would penalise households that use over 800 litres per day (and more than 200 litres per person) “without a legitimate reason”.
Maybe we can throw last night’s dishes into the bathtub too?!
Tags: water restrictions Brisbane
Posted in Inner Brisbane events, trends in Brisbane property | No Comments »
Posted by admin on 9 October 2007
Victor saw a sign in the restaurant window: “Unusual Breakfast”. Always an adventurous eater, Victor went in and sat down. “What does your unusual breakfast include?” he asked the waitress politely. “Baked tongue of chicken!” she replied with a grin.
“Baked tongue of chicken?… baked tongue of chicken! Do you have any idea how disgusting that is? I would never even consider eating anything that came out of a chicken’s mouth!” Victor cried.
Undaunted, the waitress asked, “What would you like then?” “Oh, just bring me some scrambled eggs,” Victor replied.
Tags: bad but clean jokes
Posted in just for fun! | No Comments »
