Unprecedented rates of interstate and overseas migration have sparked one of Brisbane’s strongest rental markets in a decade, with the city clocking record-high median prices that, in parts, are outstripping Melbourne.
Rental prices for houses rose by $10 to $425 a week during the December quarter, with units following close behind at $400 per week – up from $395 three months earlier, the latest Domain Rent Report shows.
It’s the city’s second consecutive quarterly price rise, and one that industry experts say could spell the end of Brisbane’s budget property era, with the pandemic-fuelled migration and a soaring property market the key drivers.
Domain senior research analyst Nicola Powell said for the first time in five years it was cheaper to rent a unit in Melbourne than Brisbane, with houses undergoing the steepest annual increase in seven years thanks to those two consecutive quarters of growth.
| HOUSES – MEDIAN WEEKLY ASKING RENT | |||
| Source: Domain Rent Report, December quarter 2020 | |||
| Capital City | Q4 2020 | QoQ Change | YoY Change |
| Sydney | $550 | 1.9% | 4.8% |
| Melbourne | $440 | 0.0% | 2.3% |
| Brisbane | $425 | 2.4% | 3.7% |
| Adelaide | $410 | 1.2% | 5.1% |
| Perth | $420 | 6.3% | 13.5% |
| Canberra | $600 | 3.4% | 3.4% |
| Darwin | $550 | 12.2% | 10.6% |
| Hobart | $460 | 2.2% | 0.0% |
| National | $469 | 2.0% | 4.8% |
“Brisbane gained the most interstate residents than any other capital over the June quarter … the lure of the city is real – from the lifestyle and the climate to the containment of the virus,” Dr Powell said.
“Tenants are (also) seeking liveability, affordability and are no longer tied to a specific location in the work-remote era. Brisbane’s vacancy rate is likely to tighten further in the coming months due to the rising interest from southern states and the flow of residents from regional Queensland into Greater Brisbane.
“This is a milestone because the commentary around Brisbane has been around that heightened unit development … but the city has passed that construction peak, and now we’ve seen that pool of stock decline.”
Dr Powell said the estimated choice of vacant rentals had also dropped by about one third in recent months – a trend that had reverberated out to Queensland’s top lifestyle hot spots, the Gold Coast and the Sunshine Coast.
“House and unit rents reached record highs in the Sunshine Coast and Gold Coast – in fact, they both outperformed Brisbane,” Dr Powell said.
“Gold Coast house rents increased $20 over the quarter and year to $540 a week.”
| UNITS – MEDIAN WEEKLY ASKING RENT | |||
| Capital City | Q4 2020 | QoQ Change | YoY Change |
| Sydney | $470 | -5.1% | -7.8% |
| Melbourne | $388 | -3.0% | -7.6% |
| Brisbane | $400 | 1.3% | 3.9% |
| Adelaide | $340 | 0.0% | 7.9% |
| Perth | $350 | 2.9% | 12.9% |
| Canberra | $495 | 3.1% | 3.1% |
| Darwin | $420 | 7.7% | 7.7% |
| Hobart | $400 | 0.0% | -2.4% |
| National | $432 | -3.4% | -5.7% |
| Source: Domain Rent Report, December quarter 2020 |
Across Brisbane, median rents are up by $15 a week compared to December 2019, with the vacancy rates down by one percentage point over the past 12 months to a tight 1.9 per cent.
Originally published by Sarah Webb in Domain HERE.
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