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Rental Squeeze: Brisbane rents rising faster than all other capitals

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  • Post published:October 28, 2021
  • Post category:News

Article originally published on Realestate.com

Brisbane rents are rising fastest of all Australian capitals, latest quarterly figures show, with Covid seeing in the highest annual rental price surge Australia has seen since the GFC.

The CoreLogic Quarterly Rental Review released Wednesday found Brisbane notched the strongest growth in rent of all capitals during the September quarter at 2.6 per cent, followed by Sydney’s 2.3 per cent rise.

The flood of people ditching bigger cities for greener pastures post Covid also had a massive impact on regional Australia, where latest CoreLogic figures logged record annual rental price growth of 12.5 per cent – compared to 7.5 per cent off the combined capitals.

The figures show typical dwelling rent in Brisbane was $491 in the quarter, higher than the national median of $485, with the year-on-year change (9.7 per cent) higher than national growth (8.9 per cent).

So far this year rents in Brisbane have grown 8.2 per cent (Jan to Sept), CoreLogic found, though rental yields dropped from 4.4 per cent 12 months ago to 3.93 per cent in September. Brisbane yields were still outperforming Sydney (2.45 per cent) and Melbourne (2.76 per cent).

CoreLogic research director Tim Lawless said private sector investors – the largest contributor of rental housing – had gone from making up 23 per cent of national housing market activity in January to account for 31 per cent of mortgage demand in August.

Houses were also in more demand than apartments, though that gap was closing as rental options narrowed, Mr Lawless said.

“Renters are clearly looking for lower density housing options, with house rents rising at more than double the pace of units rents over the past year, however this trend is starting to narrow, with national house and unit rents rising at the same rate over the September quarter (1.9 per cent).”

He said “more renters are working from home, which could be driving a trend towards smaller rental households as tenants look to maximise their space and working environment during Covid.”