Brisbane Rental Update: September 2023
The Brisbane rental market is experiencing unprecedented dynamics, making it crucial for landlords and tenants alike to stay informed. At Housemark, we specialise in property management and are dedicated to providing you with the latest insights and tips to navigate the ever-evolving Brisbane rental market.
Understanding the Brisbane Rental Market
Brisbane’s rental market has seen some significant shifts in the year’s third quarter. Within a 0-5km radius of the CBD, we’re seeing vacancy rates around 1.5%. In the “middle ring”, which represents a 5 – 20km radius around the CBD, vacancy rates are even lower at 0.9%. Finally, the “outer market”, or 20km + outside of the CBD, vacancy rates are a staggering 0.6%.
To give you a clearer picture of the current situation, here are some key statistics for Brisbane:
- Median rent: $614
- 3-month change: 2.5%
- 12-month change: 8.1%
Vacancy rates in Brisbane continue to stay very low, and we expect this to continue as we approach the Christmas period.
These numbers represent high rental demand for properties in the wider Brisbane region. Coming into November, December and January, which, historically, represent the peak season for the rental market, we expect that these percentages to remain similar or be driven even lower by factors such as interstate and international migration.
Comparing Brisbane to the Other States
Brisbane, tied with Canberra, is now the second most expensive capital city to rent a unit. Median weekly rents for units have reached a record high of $550, representing a $90 increase in the past year. This shift can be attributed to several factors, including mounting international migration, a shortage of new developments, and decreasing affordability.
Additionally, Brisbane’s rental vacancy rates remain at a record low. Dr. Nicola Powell, Domain’s chief of research and economics, has noted that encouraging investment activity and increasing government support for public housing may help alleviate this situation, particularly in the unit sector.
One of the driving forces behind Brisbane’s rental market dynamics is its population growth, which stands at 2.3%, one of the strongest among all states and territories. This growth, coupled with other factors, has contributed to the demand for rental properties in the city.
Living on the Gold Coast? Check out the update here.
Interest Rates
Economists currently predict interest rate rises leading into the Christmas period, with stabilisation likely in the early stages of 2024. There are some phenomenal opportunities in the sales market for landlords looking to extend their property portfolio. We would love the opportunity to discuss how we can assist you with building your investment portfolio if this is of interest to you.
I’m a Landlord. How Housemark Can Help?
At Housemark, we understand the challenges and opportunities presented by Brisbane’s rental market. Our dedicated team of proactive Property Managers is committed to providing superior and dedicated property management services. We focus exclusively on property management and do not have a sales division, ensuring that your property receives the attention and care it deserves.
Further, we’re dedicated to providing timely, relevant and useful information to landlords on an ongoing basis. It’s our mission to redefine “Properly Managed” in the property management industry, and consistently improving landlord and all stakeholder experiences is central to this mission.