Experts say Now is the Time to Buy a House in Brisbane

New figures have revealed Brisbane has recorded its strongest annual rise in rents in three years – slowly placing the power over housing market back to landlords.

After months of flat growth in rental properties, analysis of the latest CoreLogic data by realestate.com.au shows house rents increased 2.4% in 2018, while the cost of leasing a unit became 2.6% more expensive.

Industry experts say the data shows now is the time to buy in the Brisbane market.

Realestate.com.au chief economist Nerida Conisbee said the only direction for the city’s rents from now on was up, as underlying demand in the Brisbane market began to absorb rental supply, putting upward pressure on rents.

“Now is actually a good time to look to buy because we are looking to see further increases in rental levels,” Ms Conisbee said.

“The reason being we have fewer new developments going ahead and also fewer investors in the market.”

Ms Conisbee said a change of government at this year’s federal election would prompt a further drawback in investor activity, as Labor plans to overhaul negative gearing and capital gains tax concessions.

“Queensland is also attracting a lot of people, so there’s going to be more homes needed,” she said.

"Queensland’s improving economy, relative housing affordability and rising job prospects would further entice investors to head north," Ms Conisbee said.

Weekly house rents in Brisbane climbed to $420 last year after dropping 2.3% in 2017.
They rose the previous year, but only minimally.

Unit rents rose to $390 a week after dropping 3.8% in 2017 and 1.3% the year prior.

Rental yields are also improving for both houses and units. While when regarding dwelling values, the 0.1% rise in house values offsets the small half per cent fall in unit values.

According to ABS, in 2016 the median weekly rent in West End was $450. While recent Realestate.com.au’s data has told us that the average rent price throughout the suburb is now $570.

The Brisbane suburb with the highest median weekly rent is Teneriffe at $813, followed by Pullenvale at $778 and New Farm at $775.