Depending on which report you are reading, weekly rents in Brisbane are either set to rise markedly or fall because of extra supply.

A BIS Shrapnel report says that the Labor government’s plans to restrict negative gearing to new homes will prompt rents to rise because fewer investors will be buying. The report concludes that rents in Brisbane will rise by 5.1%, though prices of units will fall by 4.2%, by 2026. Home building will respond to decreased investment demand and fall by 4%: it is this that will then restrict the supply of property for renters. In Brisbane, the BIS Shrapnel analysis estimates that rents would rise by 5.1% during the next 10 years because of the proposed negative gearing changes.

On the other hand, the RBA has warned that a “mismatch between a growing supply of geographically concentrated apartments on the east coast and softening demand for these apartments in some areas – given the rebalancing of housing demand and strengthening of lending standards .” In plain English, this means the bank expects property prices and rents will fall in the short term.

So, what is the answer for renters and investors? Generally, ignore these big reports and ‘shop local’. Every suburb is different, with different property and economic dynamics, and a different ‘neighbourhood feel’. Speak to local agents, and discover what is hot and what is not from local experts. Then shop around and concentrate on getting the right home for your particular situation. Do this, and a rise or fall of a few percent in price and rent over the next ten years won’t make a difference.

Here we look at Indooroopilly, Highgate Hill, and Redcliffe.

Indooroopilly (4068)

The median house price has increased by 8.44% over the last year, to $ 835,000. Average weekly rental is $ 525, giving investors a gross yield of 3.27%.

The median unit price is $ 485,000, unchanged over the last 52 weeks. With rent averaging $ 420 per week, investors see a yield of 4.50%.

[el]440[/el]

Highgate Hill (4101)

Tenants pay an average of $ 550 per week to rent a house here. Investors see a rental yield of 2.79% based on the median price of $ 1,025,,000, which is down up 1.99% over the last year.

Average unit rental is $ 420 per week. At the median price of $ 420,000 (an increase of 11.46% over the price 12 months ago), investors will make a gross rental yield of 4.08%.

[el]366[/el]

Redcliffe (4020)

The average house rental is $ 360 per week, at which price an investor would receive a gross rental yield of 4.82% based upon the current median price of $ 388,250 (which has increased by 1.37% over the last year).

Tenants of apartments pay an average of $ 350 per week in rent. Based on the median unit price of $ 365,000 (up by 5.80% over the last year) gross rental yield is 4.99%.

[el]496[/el]

(Data from CoreLogic RP Data)

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