Brisbane renters flock to new developments

While vacancy has remained tight, the competitive nature of the Inner Brisbane apartment market has driven softening rents over the December quarter, resulting in a decrease in average rental yields.

Building managers have also reported that new buildings are taking longer to reach full occupancy.  

However, well-located, high-quality buildings with strong amenity are largely unaffected, recording little rental price decreases and have seen minimal ‘renter churn’ – with renters happy to stay on despite new projects available around them.

There are indications the Inner Brisbane apartment market has begun to self-regulate.

Positive absorption of new apartment rentals is already evident through the 24 per cent increase in bond lodgements for the December quarter, compared to the same period 12 months prior, based on Residential Tenancies Authority (RTA) data.

The growth in bond lodgement is expected to continue over the next 12 months, boding well with a declining level of new apartment supply coming to the market. Additional research from Urbis indicated that new projects launching were significantly down on this time last year.

“The continued decrease in future apartment supply will give the rental market time to absorb new apartments,” said Mr Riga.