Brisbane Rental Market Update – Feb 2016

Your Property Hound> is a boutique buyer’s agent service helping investors and home-buyers, purchase residential real estate in Brisbane. As part of the service for investors, we provide a regular Brisbane Rental Market Update to assist clients with their buying decisions.

Brisbane Rental Vacancy Rates

Rental Vacancy Rates are an important indicator of the supply and demand for property. A balanced rental market has a vacancy rate of around 3%. Brisbane rental vacancy rates have decreased slightly from 2.9% to 2.7% for the month of January. (Source SQM Research)

Brisbane Rents

While home values continue to rise, the rental market is underperforming with no growth in weekly rents across the combined capital cities index over the past twelve months: this is the lowest rate of rental appreciation since 1996. Weekly rents have shown a modest fall in Brisbane of 0.7% On a national basis, rental returns were as follows for Sydney (3.2% houses, 4.2% units) Melbourne (2.9% houses, 4.0% units) Hobart (5.0% houses, 5.1% units) and Canberra (4.1% houses, 5.2% units). Brisbane and Darwin share the highest gross rental yield in the country for units (5.3%), and remains in the top three Australian capital cities for gross yield for houses (4.3%). Courtesy CoreLogicRP Data home Index Value tables

Brisbane: Rental yields vs property type

In Brisbane, units tend to achieve the highest rental return for investors. When looking at houses, those with 3 bedrooms provide the best yields. (see graph below courtesy of SQM Research) http://www.sqmresearch.com.au/property-rental-yield.php?region=qld%3A%3ABrisbane&type=c&t=1   Your Property Hound is a Brisbane based buyer’s agent. We are active in the local market and have the knowledge to assist you in buying property suited to your needs. Please contact us for further information.