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Boosted buyer’s market in Brisbane, opens opportunities for house hunters and investors alike, with favourable rates and a surge in new development homes, providing a smorgasbord of choice. Domain Group reports that this optimal buyers’ market is not positively transferring to the rental market, with Brisbane vacancy rates rising to 3.2% this year versus 3% 2015.
The current high vacancy rate conditions have created a ‘renter’s choice market’, where prospective tenants can pick and choose their rental property from an overflow of available stock. Additionally, the favourable buyer’s market creates opportunity for tenants to purchase their own home, resulting in an increased number of tenants vacating.
The knock-on effect results in stalling rent rates and in some cases, rent rates falling as properties compete against abundant new stock.
Domain Group report noted a quote by Dr Wilson, who specializes in housing market analysis;
"Rents have been flat for some time now, and will likely continue into the foreseeable future. But yields are high in Brisbane – in fact, highest of the mainland, which is attractive to investors. However, the issue is securing a tenant, and that's the challenge."
REIQ, reports that rent rates are expected to decline mainly due to stock levels being high. The drive of new developments scheduled over the year ahead, gravitates the expectation that rent prices will weaken over the next year. It is anticipated that rent vacancy rates and rent values will start recovering in 2018.
The message is clearly to look after current long term tenants and to settle on a decent rent price
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