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 property market 2024.  What does it look like ?

Brisbane property market 2024. What does it look like ?

There is no one better than Suzana Wade, principal of Locate Property, to talk about what the future holds for the Brisbane property market in 2024.

It has been a dramatic rollercoaster ride for all property markets around Australia but in particular the Brisbane property market, with recent growth of over 45% through 2020–2021.

A small retraction was experienced since its peak in the earlier 2022 year but the buying pressure remained and due to a significant lack of stock, prices once again rebounded over 11% through February this year.  

Investors and home owners are still looking for the locations that provide the best bang for the buck, such as the Brisbane Olmypics and recent large-scale infrastructure projects such as Queens Wharf Casino. Is it any wonder that Brisbane is still at the top of the list for anyone still shopping for property hot spots? Remember, Brisbane still has a median price point of just over 60% that of Sydney

This shows that the city is growing while still being affordable. This mix makes the city a better place for buyers and investors to live. As the need for A-grade homes and investment-grade properties grows, Suzana Wade’s experience in the property management Brisbane market backs this up.

At the moment, these are Brisbane’s median home prices:

  • All homes in the capital city: $779,270 (Change every month: 1.3%; change every three months: 3.9%; change every year: 10.7%)
  • Houses in the capital city are now worth $870,526 (up 1.4% month-to-month, 4.1% quarterly, and 10.6% yearly).
  • $552,332 for capital city units (1.0% change every month, 3.1% change every three months, and 11.3% change every year)
  • Regional dwellings: $605,256 (Monthly change: 0.8%, Quarterly change: 2.5%, Annual change: 7.2%)

The resilience of the market prompts the question: What attributes contribute to such robustness?

Internal migration, particularly the influx from Victoria and NSW into Queensland, drives the demand for more affordable properties in lifestyle-centric suburbs.

Despite being one of the nation’s strongest states, Brisbane offers greater value for money compared to Sydney and Melbourne. Significant interstate migration continues to benefit Brisbane. Federal government forecasts indicate Queensland’s population is expected to grow by over 16% by the time Brisbane hosts the Olympic Games in 2032.

The projections foresee a population shift towards Greater Brisbane, with most Queenslanders likely to reside in this region during the significant Brisbane Olympic Games. The growth disparity between Greater Brisbane and the rest of Queensland is apparent, with faster projected growth rates for the capital.

As of 2021–22, over half of Queenslanders lived outside Brisbane. However, the forecasted growth rates hint at a reversal, with an anticipated majority residing in the capital by 2032–33.

Forecasts for Brisbane’s housing market paint a diverse picture, akin to having one hand in hot water and the other in cold water. Some properties have remarkably outperformed others, notably freestanding houses within 5-7 km of the CBD or within esteemed school catchment zones, witnessing substantial value appreciation.

Notably, Westpac’s projections for Brisbane foresee five years of remarkable real estate growth, estimating around 43% growth by 2025. In comparison, Sydney and Melbourne are expected to experience 36% and 33% growth, respectively.

The demand for detached houses in Brisbane’s inner and middle-ring suburbs, coupled with a burgeoning interest in lifestyle areas, positions these locales to outshine cheaper properties in the outer suburbs. Meanwhile, the demand for apartments might remain subdued, while townhouses in Brisbane’s inner suburbs gain favour among more Queenslanders.

However, it’s crucial to acknowledge the divergence in growth potential across Brisbane’s various locations. While some exhibit strong growth prospects, certain submarkets might not be conducive to investment.

The evolving trends suggest a shift towards properties offering “pandemic appeal,” emphasising attributes like space, security, and a liveable environment. Factors such as proximity to amenities, good schools, mobility, and job accessibility are increasingly becoming priorities for buyers.

For those in stable financial positions, the current climate presents a favourable window to invest in Brisbane’s housing market. The shortage of A-grade homes and investment-grade properties, coupled with a surplus of buyers, tilts the market in favour of sellers, potentially leading to further asking price hikes that translate to future sale price increases.

All in all, it is still a seller and landlord market, and Brisbane property market 2024 shows no immediate signs of slowing, says Suzana.  

Brisbane rental properties shows no signs of slowing

Brisbane rental properties shows no signs of slowing

Suzana Wade, Principal of Locate Property, presents the latest insights into Brisbane rental properties located within the greater Queensland market amid the ongoing housing crisis.

Recent data from property research group Proptrack has unveiled a staggering trend: rental properties in Queensland are capturing an overwhelming interest, with more than 120 inquiries per property on average. Notably, the top 10 properties attracting the highest number of inquiries, as reported on realestate.com, are all nestled within Brisbane.

Of these Brisbane rental properties, a residence situated in Bowen Hills, an inner-city suburb with a median rent of $520, garnered a notable 127 inquiries, showcasing the high demand in prime locations.

Interestingly, the fervor for properties extends beyond the city center, with suburbs like Loganlea, Richlands, Berrinba, and Doolandella each receiving over 100 inquiries for individual properties. Notably, both West Ipswich and Ellen Grove saw a considerable influx of around 120 inquiries per property.

The classification of inquiries encompassed engagements with real estate agents or interactions with the property advertisements, according to the data.

This surge in demand doesn’t come as a surprise to locals like Clayfield resident Shoshana Huppert, who faced numerous rejections for rental applications in the previous year. Huppert shared her experience of settling for a townhouse with friends due to prior rejections, highlighting issues with its maintenance and cleanliness.

Huppert discussed her ordeal and the difficulties she had finding suitable housing, stating that she had initially wanted to live independently but had to compromise because of cost. Eventually, she found a rental in Clayfield, opting to live with multiple roommates to navigate the competitive rental landscape.

Proptrack’s figures reinforce the tight vacancy rate in Brisbane, standing at a mere 0.86 percent. Senior economist Eleanor Creagh from Proptrack emphasized the persistence of these conditions, indicating an unlikelihood of immediate relief for renters in the foreseeable future. Creagh stressed the pressing need for an increase in rental property supply as a sustainable solution to the crisis.

Expanding the scope, CoreLogic’s data shed light on more affordable rental options within a 20-kilometer radius of Brisbane’s city center, showcasing areas like Ipswich, Logan, and Beaudesert with comparatively lower median rents for both houses and units.

Capitalizing on this trend, Eliza Owen, Head of Research at CoreLogic, highlighted the overall spike in capital city rents across Australia, attributing it to factors like limited stock availability and shifts in population movements between urban and regional areas. Owen pointed out the increasing attractiveness of previously overlooked suburbs, now experiencing heightened rental demand from professionals working or studying in city centers.

These statistics for Brisbane rental properties paint a vivid picture of the intensifying rental landscape, urging stakeholders to consider sustainable solutions to address the pressing housing challenges faced by renters across Queensland.

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