According to new data, real estate rent in Brisbane was particularly hit hard by the housing crisis in 2022, with rent increases of over 10% for both houses and apartments, as experts warn that little relief is in the cards.
According to Suzana Wade of Locate Property, a local real estate firm that specialises in Brisbane Property Management, Brisbane rents increased to their highest level ever in the calendar year 2022, while even larger state capitals Sydney and Melbourne only saw single-digit percentage increases.
Brisbane’s median weekly rent for houses increased by 10% to $440, while apartment rents increased by 11.6% annually to $530.
The “strongest calendar year growth on record for Brisbane,” according to real estate commentators, with little hope for relief in 2023.
Simply put, demand has outpaced supply. There is no indication that this will change significantly in 2023. Landlords have had room to raise rents quite significantly.
She says that rents will go up in 2023 because there aren’t enough listings on the market, there is a constant high demand for rentals, and properties rent out quickly. According to data from PropTrack, rents in Brisbane went up the most from one year to the next in the last quarter, by 15.3%.
According to reports, January this year was the rental market’s busiest month because more homes than usual became available.
But she added that a reduction in Brisbane real estate rent increases was “not imminent.”
“We anticipate that rents will continue to rise in 2023, though perhaps not by the same amount as they did in 2018. There are few indications that the demand is slowing down, and there are also few signs that the rental stock supply is growing. As a result, rental-price growth will be fairly robust in 2023.
Numerous families are only now beginning to recover from the Brisbane floods, and there has been a significant increase in migration as a result of the pandemic, according to the Locate Principal, who was named as Brisbane’s Best Property Manager (BDM). The competition for available rental homes is “not at the same feverish pitch as last year,” she predicted, so there will be fewer applicants.
But she claimed that the circumstances still weren’t ideal for rent to decrease.
“I fail to understand why rents would decrease. If you look at the city, many people are relocating there, and the majority will rent before they buy. Before entering the sales market, people who want to see some rate predictability may choose to continue renting for a little while. Some people prefer to have capped rent for the duration of the lease.
Real Estate Rent is Brisbane increased by 11.4% in 2022, compared to a 7.3% increase in 2021.
As more people move back into the inner city following the pandemic, unit rents have increased significantly in 2022, whereas house rents dominated growth in 2021. The increase is significant given that Brisbane house rents increased by 10.5% and units rents by 3.9% respectively, in the year 2021.