Brisbane Rentals.  Tenants are still on the rise.

Brisbane Rentals. Tenants are still on the rise.

Rental Demand Is Skyrocketing Rental Prices As Brisbane Becomes Second Most Expensive City To Rent

Suzana Wade is one of Brisbane’s leading property managers and the principal of Locate Property. Suzana weighs in on the current situation with Brisbane Rentals and the further increase of tenants looking for homes and she gives her opinion on what the future holds for renters and investors.

Median rentals in Brisbane reached a record high of $550 per week last year, making it the second most pricey capital city to rent an apartment, tied with Canberra.

In a record run of rent increases that is exacerbating the rental crisis, the most recent Domain Rent Report for the December quarter, revealed that the median asking unit rent in Brisbane had increased by over 19.6% in the last year.

The combination of rising international migration, a lack of new developments, and declining affordability has left our formerly accessible city second only to Sydney in terms of median unit rents. The report also revealed that rental vacancy rates are still at a nearly all-time low of 0.9%, conditions that are all combining to continue the rental crisis. The fact that Brisbane’s vacancy rates have been below 1% for over two years is particularly concerning.

Domains research claims that after a modest quarterly increase, the inner east area of Brisbane is now the most costly place to rent a home, at $758 per week. After a 1.5% increase, the city’s CBD is the most expensive area for apartments, at $650 per week.

Another factor impacting rental demand is that Queensland has one of the strongest rates of population growth across the country at 2.3 percent. With the total population of Australia growing by eight million people in the last 25 years.

Domain chief of research and economics Dr Nicola Powell stated that an easing of the rental crisis may come, especially in the unit sector, by promoting investment activity and expanding government and public housing. But due to the current shortage of supplies across the country, demand will remain high for the unforeseeable future. 

Meaghan Scanlon, the housing minister for Queensland, commented on the national housing crisis last year, commenting on the highly competitive market, and historically low rental property vacancy rates contributing to the near 20 percent increase in rent for tenants over the previous 12 months.

That is in addition to all the other elements that emerged during the pandemic, such as abnormally high migration, problems with the availability of land and buildings, and elevated demand. Ms Scanlon pointed out that the impact the current state of affairs is having on younger generations makes it feel especially dire.

I will continue to keep Brisbane investors, renters and those looking to enter the Brisbane market informed and prepared to best navigate the continuing challenges impacting us all.

Suzana Wade is a leading authority in the Real Estate industry in Brisbane, particularly in Property Management sector and has been voted as Brisbane’s best property manager. For further advice and insights into Brisbane Property Management you can contact Suzana Wade HERE

You can also keep up to date with the latest resources for both investors and tenants in Brisbane through REIQ

What’s happening to property managers in Brisbane?

What’s happening to property managers in Brisbane?

As the Brisbane rental crisis continues, it’s becoming a property management nightmare, with manager’s facing violence, threats, and mass resignations.

Suzana Wade, Principal of Locate Property   and one of Brisbane’s top property managers, gives us her take on the current state of the rental industry, the crisis, and the little-known impact that is having on the property managers in Brisbane. Suzana provides insight into how she is using her platform as a Locate Property Principal to help investors and renters navigate difficult times in a way that mitigates hostile behaviour towards property managers.

The latest estimate predicts one in four property managers will leave the field over the next five years due to excessive workloads and the possibility of verbal and physical violence just for carrying out their duties.

As rental vacancy rates continue to drop to historically low levels, property managers are being singled out as the scapegoats for the growing tension from many frustrated Queensland renters. For many it has become a property management nightmare as managers are forced to manage the immense pressure to balance the conflicting demands for involved. Tenants are fighting to maintain a roof over their heads, and landlords are being criticised for raising rental fees as they fight against increased expenses.

Concerning accusations of verbal and physical abuse aimed at property managers have been brought to the attention of Real Estate Institute of Queensland (REIQ) CEO Antonia Mercorella. These reports have led to “high levels of stress in the sector, and mass resignations.”

According to Ms Mercorella, property managers sometimes suffer unjust criticism from the community and are blamed unfairly for the situation of the market because they work directly with tenants.

Since women make up the majority of the workforce in the property management sector, there have been alarming reports of verbal and, in some cases, physical abuse directed at property managers as they go about their daily duties trying to protect both tenants’ and property owners’ best interests.

Property managers bear a legal and fiduciary responsibility to their clientele to ensure they always have access to precise and current details regarding rental terms and market rates. Between desperate tenants and landlords are property managers. Property managers are in direct contact with tenants and growing tenant pressures can put pressure on managers.

According to Ms. Mercorella, since Covid’s eviction moratorium rules, property managers have also had to deal with a markedly heavier workload. A recent wave of legislative changes that have made their job even more difficult have increased this burden. One of these regulations limited rent hikes to once every 12 months, and it went into effect on July 1.

Due to increased interest rates, landlords are also facing financial pressure. Landlords are wanting larger returns to counteract ongoing interest rate increases and tenants who faced significant rent increases were pulling in conflicting ways forcing property managers to mediate pressure from both parties.

According to The Voice of the Property Manager in 2022, a poll of property managers in Australia revealed that 23% planned to leave their positions within a year, while the job search platform Seek was at the time advertising around 4,500 positions.

Property management can be a very demanding role as managers have to deal with both owner and tenant, and dealing with someone’s house and shelter—as well as their investment, which are very important to both parties—often involves emotional turmoil.

As an experienced property manager and Principal of Locate Property Brisbane, the current escalation of issues in the property management sector isn’t a new problem to me; it is an old problem resurfacing due to new pressures. The key is supporting the newer members of the workforce and ensuring that the culture that we create at work is as supportive and positive as possible. We are a team, and the newer members need strong leaders to help them navigate these new times.

Many real estate businesses see property management as a secondary element of their business and often overload their managers with too many properties and not enough resources. This can lead to burnout for manager, but it also gives us a clear vision of how current issues in real estate have escalated to the point of verbal abuse and even threats of violence.

When managers have too many properties to manage, they are more likely to have a breakdown in their relationship with both owners and tenants. When tenants aren’t consistently heard from and understood, it becomes impossible to honour the financial requirements of owners in a way that will work for both parties.

When managers are restricted to an appropriate amount of properties it becomes much easier for them to provide the best possible solutions for both owner and tenant. They can be aware of growing tensions before they escalate and they can proactively work towards optimal outcomes for all involved.

At Locate we have been able to navigate a lot of the issues facing the property management sector, because the underlying factors causing the property management nightmare are core elements of how I run Locate, ensuring managers are given the resources to expertly cater to all of our owners and tenants.

Suzana Wade is a leading authority in the real estate in Brisbane, particularly in the Property Management industry and has been voted as Brisbane’s best property manager. For further advice and insights into Brisbane Property Management you can contact Suzana Wade HEREYou can also keep up to date with the latest resources for both investors and tenants in Brisbane through REIQ

Brisbane Properties :- Rents are soaring, where are the investors ?

Brisbane Properties :- Rents are soaring, where are the investors ?

Brisbane Properties
Brisbane Properties

Suzana Wade of Locate Property is a local Brisbane property management expert who is on the ground in Brisbane, speaking to tenants every day. Her insight is invaluable when actually trying to ascertain investor sentiment and tenant feedback for Brisbane Properties, and right now is a bad time to be a tenant.  

Property rents are increasing, and vacancy rates are at an all-time low. However, this should be an excellent time to be a property investor. However, why hasn’t this translated to more investors buying right now?  

Tenant demand is robust, rental prices are rising, properties are in little danger of sitting empty, rental returns are strong, and it’s starting to shift to be a buyer’s market in many locations thanks to recent declines in purchasing prices.

However, investors have been noticeably absent from the festivities. According to Australian Bureau of Statistics data, the value of investor lending for homes in February was down 32.6% year over year. Overall, house lending was down 30.9%.

It’s crucial to emphasise that a lack of investors isn’t the only reason for our housing crisis; governments and a lack of development are also to blame (the number of dwelling approvals in February 2023 was down 31.1% from the previous year). 

However, investor participation helps to alleviate the crisis.

The main obstacle, according to PropTrack economist Angus Moore, has been interest rates, which have crushed investors due to limited borrowing capacity and higher mortgage rates. 

repayments just like everyone else. The Palaszczuk government’s new tenant legislation is a close second in terms of the reasons keeping investors out of the Brisbane property market.

Although prices have retracted by on average 5–10% over the last 18 or so months, investing in Brisbane Properties is unquestionably more expensive thanks to interest rates and hidden investment costs. “During the pandemic, we actually noticed more investors selling than buying,” Suzana said. 

“Many people saw their overall wealth decline as a result of falling home prices.” “Also, given the low number of property listings and limited new homes to buy, there hasn’t been a large selection of investment property options for investors to purchase with an attractive price discount incentive.”

Investors for Brisbane properties have the opportunity to profit.

Experts believe the moment is now, with capital city vacancy rates still falling and rental prices rising as housing supply is limited and population growth is high.

According to PropTrack statistics, a vacancy rate of 3% is considered desirable as a market equilibrium between tenants and owners; however, capital cities recorded a rate of only 1.43% in March 2023, down 55% from March 2020 and 0.66% from March 2022.

Sydney and Melbourne experienced the most significant quarterly declines, while Brisbane, Perth, Adelaide, Hobart, the ACT, and the regions experienced modest rises. 

According to the ABS, 303,700 people are predicted to move to our shores in the year ending June 30, 2022; a larger proportion of them than the average population is likely to seek rental accommodation.

Meanwhile, advertised rental prices on rose 2% nationally in the first quarter of 2023 to a median of $500 per week, representing an 11.1% increase over the previous year and the fastest rate of rent growth since well before the pandemic. 

“Given how tight rental markets are and how competitive they are, we’re seeing rents grow extremely quickly across the country.”

“The only long-term solution is more housing.” “And more investors are purchasing such homes.”

 Investor demand is expected to rise.

According to Warren Hogan, an economic advisor with Judo Bank, the present rental problem would certainly encourage additional investors to enter the market.

“We know there will be a supply squeeze and that the population numbers are there.” Rents will continue to climb, as will rental yields; prices will not fall much further and will most likely begin to rise. 

“This is an excellent time to enter the market for a long-term investment.”

Some investors appear to be in agreement.

Despite borrowing less, their share of all borrower-accepted loans is increasing. 

According to the ABS, investors accounted for 33.7% of all transactions in February 2023, up from 24.2% in February 2021 and 27.3% in February 2020.

Property Managers in Brisbane. Rent Crisis, leaders to step up

Property Managers in Brisbane. Rent Crisis, leaders to step up

Property Manager Brisbane
Property Manager Brisbane

Many Brisbane tenants are having trouble making ends meet due to the city’s housing affordability crisis. Property managers in Brisbane have a critical role to play in tackling these issues, even as governments and industry bodies attempt to develop solutions. 

A property manager in Brisbane, like Suzana Wade of Locate Property, points out that people in the property management industry should stop waiting to be told what to do, start to implement changes, and take the initiative to put down solutions that have a lasting impact on the coal face.  

Too many property managers are claiming expert status and offering nothing to the solution..  Leadership in this crisis means doing what needs to be done and doing it in a way that has an impact that counts for both tenants and landlords.  This involves providing renters with flexible rent payment options, integrating necessary services, and making every effort to ensure their safety and property security. 

Property managers in Brisbane that show real concern for their tenants’ welfare typically attract and retain renters who are more loyal, trustworthy, and proud of their rental homes. This has a knock-on effect for those owners lucky enough to have a property manager who sees the value in providing these solutions for the current crop of tenants.  

High property prices, increasing credit scores and finance requirements, and inflation that diminishes purchasing power are all obstacles for many Brisbane tenants hoping to one day own their own home. That’s why it’s more important than ever to have access to rental housing, especially affordable rental housing. Working with tenants, governments, and industry groups, property managers can take the lead in finding solutions to the housing affordability challenge.

Individuals and families, the housing market, and policymakers all need to work together to solve the housing affordability challenge. Property managers in Brisbane have a responsibility to meet the needs of their tenants, who should continue to put their necessities ahead of their wishes. Property managers in Brisbane may lead the way towards a more just and sustainable housing market by seizing the reins and making the necessary adjustments now.

While the REIQ is fighting the good fight against these crazy new rent reform laws that will only worsen the housing supply and therefore place more pressure on rental prices, property managers in Brisbane need to be next in line to effect change. For more Articles on trending real estate topics like this, follow me HERE

Property Management Brisbane- Current Rental Reform laws.

Property Management Brisbane- Current Rental Reform laws.

property management Brisbane
property management Brisbane

A property management Brisbane firm, Locate Property, founded by Suzana Wade, who is now speaking out against the state government’s new rental reform regulations. Beginning on July 1, 2023, rent hikes are only allowed to occur once per year as a result of new laws established by the government. However, as a result of the transition arrangements, any rent increases that were previously agreed upon in the lease will also be null and void as of this date.

Ms. Wade and Antonia Mercorella, chief executive officer of the Real Estate Institute of Queensland (REIQ), have both expressed displeasure with the retroactive nature of the new legislation. Ms. Mercorella has cast doubt on the legitimacy of the government’s choice to disregard previously negotiated contracts. Ms. Wade counters by saying the government’s action is unwise and may have lasting effects on Queensland’s real estate market.

Property Management Brisbane companies like Ms. Wade’s are worried that the State Government of Queensland’s ongoing stream of legislative changes may discourage property investors from putting money into the state. She warns that watering down property investor rights might have dire ramifications for Queensland’s rental market, as private investors are the primary source of housing for the state’s 1.5 million renters.

Ms. Mercorella has warned the government against being overly prescriptive when revising rental laws. She thinks the measures need to strike a good balance between protecting tenants and enticing investors to remain in Queensland. Ms. Mercorella warns that ignoring the importance of property investors could have disastrous effects on the rental sector in the state.

As a result, it’s safe to say that neither Ms. Wade nor Ms. Mercorella approve of the state government’s new rental reform regulations. They contend that these regulations could have a significant negative impact on the state’s rental market and all property management firms in Brisbane, as they will undermine property investors’ confidence in Queensland. They advocate for reforming the state’s rental laws in a way that is both thoughtful and balanced, protecting renters’ rights while also acknowledging the role of property investors.

To access Stage 2 of the proposed Rental Reform laws, Click HERE

Renting in Brisbane – Prices to hit further highs within 12 months

Renting in Brisbane – Prices to hit further highs within 12 months

Renting in Brisbane
Renting in Brisbane

Locate Property’s Suzana Wade predicts that renting in Brisbane is about to get even harder with record rent increases over the next 12 months. According to recent PropTrack statistics, tenants across the nation have another challenging year ahead of them as rental costs rise. According to the data, rentals across the country have increased by 2 percent in the first quarter, to a median of $500 per week.

In the past year alone, rents have increased by 11%, which is the biggest annual increase seen since before the epidemic. Rents in the nation’s capital increased by 4% from the last quarter of 2022 to the March quarter, bringing the yearly increase to an astounding 13%. Meanwhile, rents in the region have climbed by 2.2% from the fourth quarter of 2017 to the first quarter of 2018 (an annual increase of 4.5%).

Particularly in Brisbane but also in Sydney, Adelaide, and Perth, rents are rising “at an extremely rapid pace,” as the paper emphasises. In fact, Perth rents increased by 9 percent in the most recent quarter. PropTrack’s analysts are sounding the alarm that rent increases are likely to persist due to the current tight rental market. Particularly true in nation’s capital, where rent hikes have remained steady since they first began to accelerate in early 2022. As the pandemic has progressed, rent rises have slowed in the regions.

Except for the Australian Capital Territory and remote South Australia, rental prices rose across the country in the March quarter. The Reserve Bank of Australia (RBA) has lately paused its long-running cycle of interest rate hikes, opting to maintain a cash rate of 3.6 percent instead of raising it. However, rising rental costs show little signs of slowing down. Therefore, renters everywhere will be hit even harder than usual this year.

For more articles on trending real estate, click HERE.