Brisbane Rental Market Update – May 2016
Your Property Hound is a boutique buyer’s agent service helping investors to purchase residential real estate in Brisbane. As part of the service for investors, we provide a regular Brisbane Rental Market Update so that clients can make informed buying decisions.
Brisbane Rental Yields
Rental yield is 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 risen slightly for the month of April from 2.6% to 2.8%. Over the last 12 months, Brisbane’s vacancy rate has increased slightly from 2.3% (7,160 vacancies).
Residential Vacancy Rates
Current rent for residential properties (houses and units combined) in Brisbane was $432/wk. This figure is marginally lower (-0.6%) than the previous year.
On a national basis, all capital cities have experienced modest increases in yields over the last twelve months, except Hobart, which remained the same at 5.3%. This month Canberra as recorded the greatest increases in weekly rents of 2.2%. Over the same time period rents in Brisbane, Sydney, and Adelaide have also increased.
Brisbane: Rental yields vs property type
In Brisbane, units tend achieve the highest rental return for investors. Units with 2 bedrooms tend to perform better than 3 bedroom units.
When looking at houses, those with 3 bedrooms provide the best yields. (see graph below courtesy of SQM Research)
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 or visit our website for further information.