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RENTS are defying the national housing downturn, with Brisbane showing one of the biggest rises as it continues to buck the trend.
The latest quarterly rent report from property researcher CoreLogic reveals rents increased 1 per cent around the country in the first three months of the year. Rents in the Queensland capital rose 0.8 per cent during the period to reach a median of $436 a week, which is the same as the national average.
And they have jumped 1.4 per cent in the past 12 months. The report noted the past year had marked a change in direction for the Brisbane rental market, following several years of declines.
Rental yields are also strong in Brisbane at 4.55 per cent, which is higher than the national average of 4.1 per cent.
Quarterly rents increased in all capital cities, except Darwin. With a median rent of $582 a week, Sydney remains Australia’s most expensive city for tenants.
CoreLogic senior analyst Cameron Kusher said the first quarter of the year had recorded the highest increase in weekly rents since the corresponding first quarter a year ago.
“Our regional housing markets are performing marginally better than the capital cities, many of which have been experiencing weaker rental market conditions in recent years due to excess housing supply,” Mr Kusher said.
Universal Buyers Agents director Darren Piper said factors such as affordability, interstate migration and the return of investors indicated the Brisbane property market would see stronger rental yields and capital growth this year.
Mr Piper said properties in the city’s inner and middle rings offered the most exciting capital growth opportunities for investors in the long-term.
He highlighted the suburbs of Keperra and Chermside West for investors looking for entry-level properties, and Cannon Hill, Holland Park and Kedron for those seeking a middle-ring investment.
BRISBANE RENTAL MARKET MARCH QTR 2019
All dwellings Houses Units
Median rent $436 $453 $399
Monthly change 0.1% 0.2% 0%
Quarterly change 0.8% 0.9% 0.8%
Year-to-date change 0.8% 0.9% 0.8%
Year-on-year change 1.4% 1.5% 1.2%
Current yield 4.5% 4.3% 5.4%
Yield 12 mths ago 4.4% 4.2% 5.2%