Spring Hill Property Management: Winter Market Update
Vacancies spread with virus; local rents dip
After a strong start to 2020, Coronavirus well and truly infected the local rental market over the June quarter. The median rent of $540/week dropped to $500, back to levels last seen more than a decade ago. The Queensland border closure made its mark across inner-Brisbane as short stay and AirBNB apartments flooded into the rental market and vacancies grew daily. Spring Hill and the CBD are at the heart of these changes and have felt the impact first.
Despite talk of mass ‘downsizing’ and tenants moving back in with family etc, we’ve not witnessed that in our agency. Rent adjustments have been negotiated for a small number of tenants but generally demand dipped only temporarily. By late July we were back to 50+ new tenant enquiries into our leasing team every day. Rents now appear to have flattened and we’d expect little change until interstate travel is back to some kind of normal.
Note: RTA stats quoted here cover all of postcode 4000 including Brisbane CBD.