ABCDiamond

From this Sunday mail story http://www.thesundaymail.news.com.au...5E2765,00.html

RENT rises that could overshadow the modest lifts of the past few years are set to bite in Brisbane.

The latest interest rate rise has combined with low vacancy rates to put pressure on rents, especially in suburbs close to the city.

"When interest rates rise, investor owners need to get more income so they lift rents," property analyst Michael Matusik said.

"It does not follow the same week or the same month, but three or six months later."

Last year, Brisbane and Gold Coast rents rose 7 per cent, or an average $16 a week, according to the Midwood Queensland investment report.

Across the state, tenants paid an average of $219, a rise of 9 per cent.

The rental market in parts of Brisbane, particularly the inner-city, has become so tight that letting agents fill vacancies before people move out.
Conias Real Estate in Ascot has been running open houses for tenants for the past two or three months.

"We've had up to a dozen prospective groups of tenants go through at a time," said Brigitta Hamilton, the agency's senior property manager.

"And some offer $5 or $10 a week more so their application can go to the top of the pile, but, of course, we don't allow that."

Ray White Clayfield principal Tony Cichiello said availability in Clayfield, Hamilton and Ascot was the lowest he could remember in 10 years.

He said the dearth of stock was partly caused by landlords selling entry-level rental properties to owner-occupiers during the boom.

"And in comparison to New Farm, for example, there hasn't been the same level of construction of units because sites are difficult to obtain," he said.

Rental Hotline has 4000 Brisbane rental properties on its books and general manager John White says he is surprised that slim vacancy rates have not already caused stronger rent rises.

"It's becoming a landlords' market. Our vacancy levels are between 1 and 2 per cent," he said.
The company's Toowong office has five houses out of 350 unlet, and about 15 units out of 1150 free.

REIQ research manager Fiona Bergin said the lack of affordability of housing after the property boom forced more people to rent.

For others it was a lifestyle choice, while the thousands of migrants who come to the state each year often rent before they buy.

Mr Matusik said he thought Brisbane rents were "way too cheap" because of the low vacancy rate and what it cost to build new apartments or buy existing ones.

ABCDiamond

Average Rents from the same article, but only in the printed version:

Brisbane:
2br Flat $185-290
3br house $ 230-300

Gold Coast
2br Flat $150-250
3br house $220-320

Sunshine Coast
2br Flat $205-225
3br house $250-270

Central QLD
2br Flat $125-170
3br house $170-230

North QLD
2br Flat $145-180
3br house $230-250

Ipswich
2br Flat $155
3br house $190

Paul2004

Well I just hope they don't rise too much on The Gold Coast or it'll be the trailer park home for me in Jan 2006!

JackTheLad

Combined with houses being the least affordable to buy for 16 years, it makes pretty depressing reading for migrants.

With my very basic knowledge of how the market works, I'm confused how they can have such low vacancy rates, and yet they say rent is too low. I thought the market would have adjusted accordingly, and rates would already have risen. Maybe there is a 6 month delay until the previous contracts runs out, then they increase the rent.

Cheers,
JTL

ABCDiamond

I think there are delays. The Rental agents that I know have been advising landlords to keep rents stable. Also there has been lots of talk about a glut of rental properties, and that "talk" has resulted in landlords being concerned about raising rents.
However, with the new "talk" being "a landlords market", my guess is that rents will now rise. I must get on to the phone to my agents next week

The rental contract term will also have a lot to do with it.

tiredwithtwins

why is ipswich so cheap?
is it a crappy estate?

sue

jad n rich

Just not an area that appeals to the majorty, is a polite way to put it.

Got to say I saw the article and thought the rents suggested were very low in comparisom to what we saw recently when looking to rent. I'd be allowing a bit more myself like about $100 a week more, perhaps my standards are too high

JackTheLad

Once saw an advert for a house saying the usual distances like 25 minutes to Brisbane, etc, and at the end it said "40 minutes to Ipswich, but why would you want to?"


Cheers,
JTL

ABCDiamond

I know the answer to that one

It meant it's a good 40 minutes "away" from Ipswich, so not too close

But seriously, there may be some good places near Ipswich ? Can anyone confirm that ?

LindyLoo

It's the word average which catches you out. It could be a "cubby house" at $20 a week right up to a penthouse appartment at $1200 per week.

We started renting in Brisbane in January; 2 bedroom air conditioned unit $255. Most decent places seemed around $220 - $330.

P.S. We're fussy!

LindyLoo

Drove through it yesterday - initial impression, it seemed pretty run-down. The drive from Ipswich to CBD seemed to go on for ever.....a nightmare if you had to commute. Perhaps the train is better?

The cheap rent would not justify living there, IMO.

jwinch

Would love to know where they get there average figures from. Were on the sunshine coast - 4 bed rental $390 PW - No Air con !

Havent seen any 3 beds advertised under $300

ABCDiamond

In my area the 3 bed houses go from about $200-$260 pw.