Rents climb in Brisbane CBD as new apartment shortfall starts to bite
It will now cost you $600 per week to rent a 2 bedroom CBD apartment, according to a new report from Bees Nees City Realty. The inner city property managers say new apartment supply is needed to keep up with demand and the CBD’s post-GFC construction has not being sufficient.
Bees Nees analysed the latest June quarter data released by the Residential Tenancies Authority and median rent for a 2 bed apartment rose $20 in the past 3 months, now up 9% over the past 2 years. General Manager Clint Dowdell-Smith says corporate demand for the CBD and Spring Hill remains very strong, and there were only a handful of apartments under construction.
“From 2004 to 2006 we added 1309 homes to the rental pool in postcode 4000. In the past two years we’ve added just 68. We’re just not keeping up,” he said. “The GFC clipped the wings of a number of new developments and the long lead time of apartment projects means we’re yet to see any real volume of new supply.”
“The international student market has shrunk from what we had a couple of years ago and that’s probably kept the spike in rents to something tenants have been able to manage. But a large number of rented apartments have been selling to owner-residents, so without new supply coming online the rental pool is just too small.”