Families searching for rental properties in Greater Brisbane face fierce competition in the tightest market in ten years, with prospective renters willing to pay more than the asking price just to find a location.
Vacancy rates in Brisbane have broken a decade long record, according to SQM Research. According to data from the Real Estate Institute of Queensland (REIQ), Greater Brisbane’s vacancy rate was 1.5%, marking a significant supply problem for that market, also making it impossible for families to locate suitable affordable housing. The news comes as vacancy rates in Melbourne and Sydney trend in the opposite direction, with the Victorian capital in particular showing twice as many vacant rental properties as last year. Party due to Interstate Relocations and removals.
However, it is known that the housing market has just grown tougher since then, with the occupancy rate dropping much more — something many families are all too familiar with. Numerous families have gone through numerous rental checks and filled out hundreds of applications in the last five months in the hopes of finding a house that was both inexpensive and spacious enough for their families.
There are so many applicants for one home, and going to these checks where you see 30 or 40 applicants for one house is very overwhelming. Applications are often accepted before you even enter these buildings, making it very difficult.
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The house is rented within a day or two, and you haven’t heard anything, so you have to move on to the next one, which is exhausting and overwhelming. Owing to the inability to locate a rental, many people have taken to couch surfing or staying in caravans.
Many agents say that prospective renters searching for rental properties in Greater Brisbane are increasingly willing to pay more than the asking price or to offer several weeks, if not months, of rent in advance.
The Real Estate Agency of Australia (REAA) sets a sustainable benchmark of 3% for vacancy rates, which is regarded as the stable level in which supply and demand are balanced. Sydney has a rate of 3.3 percent, which is not much off the national average for what it is they’re through. Melbourne is bigger, but they’ve been through a lot as well, and I don’t consider it a disaster. History shows that they are normally smaller than the benchmark, but this is a rare occurrence. In many aspects, it’s ironic that the two major cities that have fared the highest in terms of economic growth and home prices have also been struck the worst by vacancy rates.
On the sellers market, Brisbane house prices have been resilient over the past year, while other regions of Australia have struggled from the economic effects of the global pandemic, and are now expected to surge in 2021.
According to a recent ANZ Bank survey, Brisbane house prices will rise by a solid 16% through 2021, before slowing to an 8% increase in 2022.
The Sunshine State is now glowing brightly, with 5.3 percent rise in the last three months. Great demand for lifestyle areas, as well as incredibly high demand for stand alone houses in Brisbane, especially in the inner and middle ring suburbs, has resulted in 5.3 percent overall growth in the last three months, with Brisbane’s more upscale homes dominating.