BRISBANE’S housing market is slowly giving the keys back to landlords, with new figures revealing the city recorded its strongest annual rise in rents in three years.
After months of flat growth in rental properties, analysis of the latest CoreLogic data by realestate.com.au shows house rents increased 2.4 per cent in 2018, while the cost of leasing a unit became 2.6 per cent more expensive.
Industry experts say the data shows now is the time to buy in the Brisbane market.
Realestate.com.au chief economist Nerida Conisbee said the only way was up for rents in the city from here on, as underlying demand in the Brisbane market began to absorb rental supply, putting upward pressure on rents.
“Now is actually a good time to look to buy because we are looking to see further increases in rental levels,” Ms Conisbee said.
“The reason being we have fewer new developments going ahead and also fewer investors in the market.”
Ms Conisbee said a change of government at this year’s federal election would prompt a further drawback in investor activity, with Labor planning to overhaul negative gearing and capital gains tax concessions.
“Queensland is also attracting a lot of people, so there’s going to be more homes needed,” she said.”
The state’s improving economy, relative housing affordability and rising job prospects would further entice investors to head north, Ms Conisbee said.
Weekly house rents in Brisbane climbed to $420 last year after dropping 2.3 per cent in 2017.
They rose the previous year, but only minimally.
Unit rents rose to $390 a week after dropping 3.8 per cent in 2017 and 1.3 per cent the year prior.
Rental yields are also improving for both houses and units.
The Brisbane suburb with the highest median weekly rent is Teneriffe at $813, followed by Pullenvale at $778 and New Farm at $775.
Lamb Island has the lowest weekly median rent in greater Brisbane at $230, followed by Russell Island and Toogoolawah.