Posted by Rob Honeycombe on 16 April 2008
The latest rental stats are out and they paint a picture of a tense market for Brisbane’s inner city landlords and tenants. The March quarter saw some new benchmarks set with record rents – in the CBD and Spring Hill the median 2 bedroom apartment has now hit a landmark $500 per week. That’s a lot of bucks no matter how you slice or dice it.
But interestingly across the inner city median rents actually dropped $5 this past quarter as landlords seemed to have shown surprising restraint with their rent rises. Our experience on the ground suggests some landlords are cautious about rising interest rates and the economy generally, so they’re opting for the safety of keeping a tenant they know, even if they’re not up to full market rent.
The bond lodgement stats support that, with the number of new bonds for 2 bed apartments lodged in the March quarter down 11% on the same time last year (21% in the CBD). Tenants of course are staying put, laying low and hoping for some thanks for paying their rent on time. We were recently asked if landlords ever recognised “good tenants” any more, but the truth of course is with such a tight market most renters are careful to keep payments up to date and look after the place.
Where to from here? We still don’t see the supply of properties improving, and without this rents will continue to grow at annual percentages comfortably in the double figures. Brisbane’s inner city has almost 30,000 rental homes but in the past year we added just 75 to that pool. Yes, 75 in total… According to the latest home loan stats investment finance dropped 9.5% (February 2008) and despite the recent completion of a couple of new towers in the CBD (approx 700 apartments in “M on Mary” and “Evolution”) few new cranes are heralding any major construction. The house market is no better.
Tenants still have a choice and many are moving further out to save rent, with the lifestyle lure of the inner city strong but not at any cost. Landlords can’t take the growth in their rents for granted. But what this year’s first stats do show is a market rebalancing itself and likely to now push ahead to even higher rents as landlords regain confidence and seek to cover increased costs.
How important is a good tenant in the overall return to a property investor? We’d like to have your view.
Tags: Brisbane housing supply, Brisbane rents, Evolution apartments Brisbane, M on Mary Apartments Brisbane, Spring Hill Brisbane
Posted in Brisbane landlords, Brisbane's rental market, Spring Hill | No Comments »
Posted by admin on 16 April 2008
Debate’s heating up over “North Bank”, the state government’s $1.7billion proposal to reclaim land from the river for what Premier Bligh says will be “Brisbane’s Darling Harbour”. Developer Multiplex has in-principle state support for its latest design, an opportunity paid for by delivering approx $300million of community amenities back to tax payers. That comes in the form of riverfront boardwalks, a 50m public pool and a new pedestrian bridge to South Bank.While the pollies claim the concept will bring people closer to some of our oldest heritage buildings (the Commissariat Store and National Trust House), and re-create “the original relationship of these early buildings to the river”, opposition is ironically being led by the National Trust. Concerned with obstruction of views of these buildings from South Bank, this lobby group says it will further separate the city from the river.
Ask most locals and they scratch their head about where the commercial offices, apartments, cafes and shops will actually be built – because there’s not much land where the proposal is sited. It’ll effectively sit over the river along the ‘wet’ side of the freeway between Parliament House and Victoria Bridge. Naturally Trust supporters are also pointing to the river’s long history of flooding as cause for concern. The Premier had said we’d see construction underway by the middle of this year, but with hydraulic studies soon to be released on the project’s impact on the river we’re tipping further delays yet.
To see the proposed plans for yourself go to the government website.
Tags: Multiplex Developments, National Trust Brisbane, North Bank Brisbane
Posted in Brisbane's future & new infrastructure | No Comments »
Posted by admin on 15 April 2008
A priest was being honoured at his retirement dinner after 25 years in the parish. The local member of parliament was chosen to make the presentation but when he was delayed the priest decided to say his own few words while they waited. “I got my first impression of the parish from the first confession I heard here. The very first person who entered my confessional told me he had stolen a television set and when stopped by the police had almost murdered the officer. He’d stolen money from his parents, embezzled from his job, had an affair with his boss’s wife and taken illegal drugs. I was appalled.”Just as the priest finished his talk the politician arrived full of apologies at being late. He immediately began to make the presentation and give his speech. “I’ll never forget the first day our parish priest arrived,” said the politician. “In fact, I had the honour of being the first to go to him in confession.”
Tags: bad but clean jokes
Posted in just for fun! | No Comments »
