Brisbane Potentially Becoming Landlord's Market

As Brisbane's asking rents currently holding record high prices, Brisbane landlords are back in the position of power within the rental market.

Increasing for the first time in almost three years, the median asking rent for houses has increased from $400 per week to $410 in the December quarter. According to the latest Domain Rental Report, those prices continued to remain strong over the first quarter of 2019.

The same has occured within the unit market, with the median weekly asking rent rise since the same time last year, despite no growth over the quarter.

This happens to be great news for Brisbane landlords, as it potenitally signals the end of what has been a tenants' market.

"Greater Brisbane's rental market is slowly changing to favour landlords, with rents rising and yields improving," Domain senior research analyst Nicola Powell said.

"We know what Brisbane went through was period of heightened rental supply, thanks to that development boom, but that stock is now being absorbed becasue the boom is over."

"Added to that is Brisbane’s relative affordability and rising job prospects, which continue to draw residents from interstate. Major infrastructure projects are set to inject significant economic benefit through job creation and spending in the coming years," Dr Powell said.

“So Brisbane tenants are going to find the rental market is entering new territory. Because the stock is shrinking, the competition to get rentals will increase.”

The rental vacancy rate is an important indicator for the bargaining power for both renters and landlords. A low or decreasing vacancy rate means landlords have an upper hand within the market. While a high or increasing vancancy rate results in tenants being positioned in the driver's seat.

However, the market is not going to swing in favour of the landlords overnight.

“Look, it’s not going to be an instant turnaround for landlords, they’re not going to suddenly see soaring rents — but what we know is that tenants are already finding the choice is narrower,” she said.

“It’s going to be a slow burn as that stock gets absorbed … but all signs point to a tightening of the rental market.”

While Brisbane rents may be on the rise, Brisbane is still the one of the cheapest capital cities in Australia to rent a house or unit.

In terms of Queensland alone, the Gold Coast remains the most expensive plance to rent with the median rent of $500 for houses and $430 per week for units. The Gold Coast remains one of the tightest rental markets in the state with a supply continuing to drive the prices upwards.