The Reserve Bank of Australia (RBA) is concerned about oversupply in Brisbane. It believes that apartment approvals, at historically high levels, could have a negative impact on rents. Renal vacancies are relatively high, and with more competition from property owners, this will be good news for prospective tenants looking to strike bargain rental agreements. It’s quite possible that a little negotiation will get a great home at a discounted weekly rental.
However, the RBA’s predictions may be a little too broad. As when looking to invest, location really does make a difference. For example, Newstead certainly is seeing a large number of apartments coming to development completion (and this development is helping to regenerate the neighbourhood), while other suburbs such as Greenslopes is still seeing high demand with relatively little development.
In reality, this undersupply/oversupply situation is not only localised but also a natural progression of the property cycle. The important thing to consider when deciding where to live, buy, or rent, is to ensure that the area provides everything you want it to: schools; transport; work; retail; and entertainment. And for all this, most of Brisbane’s suburbs provide renters with all they need.
Greenslopes (4120)
Average rents for houses are $ 460 per week, offering the owner a 3.54% gross rental yield on the median price of $ 675,000 (up by 6.58% over the last 52 weeks).
Tenants of units will pay an average $ 378 per week, while investors will pay a median price of $ 385,750 (an increase of 2.44% on this time last year) to yield 5.09%.
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New Farm (4005)
Houses can be rented for an average of $ 700 per week. For investors this represents a yield of 2.65% on the median price of $ 1,376,000 which is 11.42% up on this time last year.
Tenants will pay an average of $ 445 per week. The median unit price has decreased by 0.69% over the last year to $ 578,000. At this valuation, investors reap a gross rental yield of 4.00%.
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Northgate (4013)
House rental averages $ 410 per week. The median house price has increased by 6.42% over the last 52 weeks to $ 605,000, producing a gross rental yield of 3.52%.
Unit tenants can expect to pay an average weekly rental of $ 380. Landlords benefit from a yield of 4.83% on the current median price of $ 409,500, which has increased by 9.05% over the last year.
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Phone: 07 3452 9600
Phone: 07 3452 9618
Phone: 07 3452 9673
Phone: 07 3452 9654
