Brisbane Market Update 2022
CoreLogic’s latest rental data shows listings collapse across the combined capital cities of Australia, falling by 40% from pre-pandemic levels. This decrease in rental listings has contributed to a strong rental price growth, with rents rising 8.3 percent in the combined capital cities and 9.0 percent nationally in the year to April. Both CoreLogic and SQM Research, show Australia's capital cities rental vacancy rate drop to its lowest level in 16 years.
With that said, Brisbane’s rental market is at its tightest point in history with the city's vacancy rate falling well below the national average and national rental listings. Rent.com.au’s data in the graph, below, indicates the movement in median rents, showing Brisbane's rental properties leasing 11% faster than in April 2022 and taking 13 median days to lease in May 2022.
"Brisbane's vacancy rate has dropped
below the national average to 0.7 percent"
According to SQM Research the national vacancy rate is 1.1 percent, its lowest point on record for the third consecutive month. In contrast, Brisbane's vacancy rate has dropped below the national average to 0.7 percent.
Nicola Powell, Domain's chief of research and economics, said it was a vote of confidence in the recovery of the rental market as demand had surpassed supply after the onset of the pandemic.
“Sydney and Melbourne are driving this recovery as the two cities that experience the largest rises in their vacancy rates over the last two years.” Powell said.
"Rising interest rates and slowing median prices are driving this
rental crisis as investors try to increase their returns through rising rents"
As a result, rental stock is at its lowest level since records began, and the rental stock continues to be low across the board, with the exception of Darwin. According to SQM Research, Adelaide remains the most difficult market for renters, with vacancy remaining at 0.4%.
Brisbane's asking rents have continued to rise, with the average home listed for $529, being well above the National Average of $515. House rent prices have risen by 21.7 percent in the last year, while apartment rents have risen by 10.4 percent according to Domain.
Powell concludes that, “rising interest rates and slowing median prices are driving this rental crisis as investors try to increase their returns through rising rents. This has resulted in the overall vacancy rate decline seen in 2022 and could see lower vacancy rates remain in the coming months.".
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