Brisbane rental market easing six months after floods
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Demand for rental accommodation in Brisbane has eased after spiking earlier this year due to the impact of the floods, according to research by the Real Estate Institute of Queensland.
Vacancies across greater Brisbane increased to 2.7% in June 2011, compared with 2.3% in March 2011.
The inner-city market remains tightly held with vacancies unchanged at 1.6% over this period. Beyond the five-kilometre inner-city ring, vacancies have increased from 1.9% to 2.4%, while in the outer suburbs the vacancy rate has increased to 3.1 from 2.7%.
In September 2010, the REIQ calculated the greater Brisbane vacancy rate at 2.8% with vacancies at2.5% in inner-Brisbane and 2.6% in the rest of the city.
Following the floods, the state government estimated that about 28,000 Brisbane homes would need to be completely rebuilt following the floods, with many more uninhabitable for weeks or months after.
About 20,000 were completely flooded, with a further 12,000 partially flooded.
VACANCIES AS AT END OF: | Sep-10 | Mar-11 | Jun-11 |
|
Brisbane SD | 2.8% | 2.3% | 2.7% |
|
Brisbane City | 2.6% | 1.8% | 2.1% |
|
Brisbane Inner (0-5km) | 2.5% | 1.6% | 1.6% |
|
Brisbane Remainder | 2.6% | 1.9% | 2.4% |
|
Brisbane Surrounds² | 3.0% | 2.7% | 3.1% |
|
Ipswich City | 2.3% | 2.3% | 2.8% |
|
Logan City | 2.3% | 2.2% | 2.7% |
|
Moreton Bay Regional | 3.8% | 3.6% | 3.2% |
|
Caboolture * | 4.9% | 4.3% | 4.5% |
|
Pine Rivers | 2.5% | 1.5% | 2.5% |
|
Redcliffe | 2.8% | 4.6% | 2.8% |
|
Source: REIQ
“There was a spike in demand for rental property earlier this year as both displaced owner-occupiers and renters tried to find alternate accommodation after the floods and cyclone,” says REIQ managing director Dan Molloy.
Molloy says the latest vacancy rates show that six months after the floods the southeast Queensland rental market is starting to return to a more balanced level of supply and demand in most areas.
Vacancies are currently taking one to two weeks to relet in the inner suburbs, while other parts of Brisbane are taking a fraction longer, according to property managers at REIQ-accredited agencies.
On average, listings are receiving two to five applicants across the municipality.
The municipalities surrounding Brisbane all recorded easing vacancy rates, with Moreton Bay the exception, thanks to a tighter rental market in Redcliffe.
In the Pine Rivers area, vacancy rates are also tight at 2.5%, however many agents report an oversupply of stock due to new developments in the area.
As at the end of June, Logan City continues to record the lowest vacancy rate in the Greater Brisbane region, despite an easing market. Agents are reporting lower enquiry levels, with rental listings taking between one and four weeks to let and attracting between two and five applicants.
In Ipswich, where many rental properties were affected by flooding, agents are reporting improved market conditions.
The increase in rental vacancies comes as property investors return to the Queensland market.
During the June quarter the number of investment dwellings financed in Queensland increased 16%, with investors now accounting for 30 per cent of the market, according to the latest ABS figures.
Outside of Brisbane, improvements made to flood-affected properties are not equating to higher asking prices, according to the REIQ.
As a result, many agents reported listing times of two to four weeks.