Michael Matusik is a highly respected Real Estate Forecaster and Analysist in Brisbane. I love his emails as he deals only in facts. His latest email this week I thought was particularly interesting he talks about rental returns in Brisbane in Units as well as Vacancy Rates. We all know we are in a ever-changing market with the oversupply of units being built currently in Brisbane.
Average Rents in Brisbane May 2017
Below is a summary of the two-bedroom apartment rents for the inner Brisbane postcodes and their corresponding change in the number of new apartment bonds lodged.
Housing markets, at the local level, are heavily influenced by supply and demand.
The superficial lifts in weekly rents in postcodes 4010 and 4064 are a reflection of the number of new apartments settled in those locations over the last 12 months. For example, the number of new apartments for rent in Albion has increased by 75% since early 2016.
Many of these new apartments rent for more than the older stock. Incentives are also in place to attract tenants at the promoted (and often inflated) rents used to help attract an investment sale.
Furthermore, rents for older apartment digs, in many locations across inner Brisbane are starting to slide. This is what happens when new rental supply is ramping up. Some 5,500 new rental apartments are up for rent across inner Brisbane over the past 12 months.
The vacancy rate in postcode 4010 is currently 7.5% and for postcode 4064 is about 5.9%. That, however, can only come from sampling and, as when it comes to capital growth, by looking at the same set of apartments over time. Substantially renovated apartments also need to be excluded from the sample set.
Vacancy Rates May 2017
New inner Brisbane apartments are attracting tenants and have a lower than average vacancy rate – there must be reasons why? Is it the facilities that these new buildings are offering like roof top pools and cinemas? Or like everything Real Estate does it comes down to price and what the property offers? Not all residential markets are experiencing deteriorating affordability.
If you have any queries at all please feel most welcome to call me anytime – my mobile is 0402908271 or email is email@example.com.
Information sourced from Michael Matusik – Matusik Missive. Contact Michael at Matusik.com.au.