During March, median asking rents for houses climbed by 2.6 per cent to $583 in Brisbane. With a vacancy rate of only 1.3 per cent.
In the current market landlords can re-negotiate at the end of lease and adjust their rents to the new market rate without the risk of an extended period of vacancy. In some cases this may equate to as much as a $100-$150 per week increase.
Locally we are seeing strong competition from tenants with multiple applications rolling in prior to the first open home.
The combination of several factors are causing increased pressure on an already strained rental market:
- Large-scale relocation due to flooding
- Slowdown in constructing due to supply shortages
- The opening of international and all domestic borders
- Lack of investors buying into the market
Terry Ryder, director of property research firm Hotspotting, said rental markets nationwide were experiencing chronic rental shortage, which would push rents to record highs.
“The industry standard has always been that a 3 per cent vacancy rate represents a balanced market, where there’s a reasonable level of supply and rents are stable,” he said.
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