As the CEO of Locate Property, a leading real estate business in Brisbane, I have been closely monitoring the current rental market trends and analysing data to predict what the future holds for our industry. Recently, there has been a lot of talk about the rental market for 2023 and beyond, and I wanted to share my insights with you.
According to a recent report by the ABC, the Australian rental market is set to tighten in 2023 and 2024. This is due to a combination of factors, including an increase in interest rates, a softening in the selling market, and a lack of new construction projects coming online. These factors are leading to a decrease in rental property availability, which is putting upward pressure on rental prices.
In Brisbane, we are already seeing this trend play out. In the past 12 months, we have seen a significant increase in the demand for rental properties, with a 30% increase in demand. However, the availability of properties has decreased by 26%. This is a recipe for upward pressure on rental prices. In particular, we are seeing units on the north side of Brisbane going from $450 to $550 over the next 18 months, with houses at an even higher rate.
As the rental market tightens and rental prices continue to rise, it is important for renters to be aware of these market trends and to start preparing for potentially higher rental prices in the future. If you like where you live and the rent is within your budget, it may be a good idea to lock in your lease for the long-term. For landlords, it is important to talk to your bank or seek advice from a strong independent finance broker to ensure you are on the most competitive interest rate possible. Additionally, it is important to appoint a rental agency that strikes the right balance between rewarding great tenants and maximising yield opportunities as leases fall due.
Suzana Wade is always staying ahead of the curve and providing our clients with the most up-to-date information and insights on the market. We understand that this can be a challenging time for renters and landlords alike, and we are here to support you through it. We advise our clients to consider all their options and make informed decisions that align with their personal needs and goals.