Brisbane Rental Market Update – September 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 Vacancy Rates
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’s rental vacancy rates have fallen slightly in the month of August from 2.8% to 2.7%. (Over the last 12 months, Brisbane’s vacancy rate has increased slightly from 2.6%.)
Residential Vacancy Rates (Source SQM Research)
The average rent for residential properties (houses and units combined) in Brisbane in the month of August is $427/wk. This figure is marginally lower (-0.5%) compared to the previous month. Over the last 12months, rents in Brisbane have decreased by 1.1%.
The average gross rental yield in Brisbane remains strong at 4.2%. (This compares favourably to rental yields achieved in Melbourne (2.9%), Sydney (3%), Perth (3.8%) and Adelaide (4%). (source CoreLogic Monthly Rental Report)
(source: Core Logic (Monthly Housing and Economic Chart Pack)
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.