Spring Hill rents hold as vacancy rate tightens
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. There’s several hundred new rental dwellings to be offered to the Spring Hill market over the next 2 years and local 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 postcode 4000 rents (median 2 bed apartments) held at $600 per week in the June quarter, and across Brisbane’s inner-city there was actually a $5 rise. Over the past two years we’ve seen 2,340 rental homes added to the inner-Brisbane rental supply (a 7% increase) so the market has absorbed these new homes in fairly short time. Spring Hill’s not yet had its spike in local supply but it is coming and there’s no doubt local 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 very 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.
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Note: RTA stats quoted here cover all of postcode 4000 includiing Brisbane CBD.