By Paul Riga | 5 Jul 2019

Tenant demand for new Inner Brisbane apartments strengthened over the March quarter 2019, according to the Urbis Inner Brisbane Apartment Rental Review.

The Urbis Inner Brisbane Apartment Rental Review reported a vacancy rate of 1.6% for the March quarter 2019, tightening 0.6% from the previous December 2018 quarter. Compared to a year ago, Urbis reported a vacancy rate of 2.8%.

The Real Estate Institute of Queensland (REIQ) recorded a vacancy rate of 2.1% for the total Inner Brisbane rental market over the same period, down from 4.0% in the previous quarter.

Urbis Director of Property Economics and Research Paul Riga noted “apartment vacancy rates generally improve at the beginning of a new year, after increasing in the December quarter as tenant leases come to an end. Considering both our in-house data and the total market data provided by the REIQ, the rental market in Inner Brisbane is looking healthy.”

Apartments provide these tenants the flexibility of being able to settle into employment and get to know the city and it's different precincts.

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Over 24,000 residents migrated to Queensland over the 12 months to September 2018. Comparatively, New South Wales saw more people leave the state than arrive, registering an interstate migration net loss of 22,100 residents.

“Anecdotal feedback from participants indicated that enquiries from interstate remained solid, and certainly up from the same time last year,” Mr Riga said.

Despite a tightening vacancy rate, rental prices remained competitive, with the Rental Tenancy Authority registering an annual median weekly price drop across one and three-bedroom product, and no growth for two-bedroom product. This is the result of accelerated levels of new stock entering the apartment market, with 4,700 new apartments over 38 developments built in 2018. However, new stock levels are continually slowing with only one new apartment project launched over the six months to the March quarter 2019.

According to the Urbis Inner Brisbane Apartment Rental Review, over the last 12 months, most precincts registered slight increases in the weekly rent for new apartments. “Our research focuses on newly built apartments only, suggesting that renters will pay a little extra to live in a new development and take advantage of the amenity and location that comes with that,” Mr Riga said.

  • 22 apartment projects surveyed equating to 3,322 new and near new apartments.
  • An indicative vacancy rate of 1.6% recorded, the REIQ registered a vacancy rate of 2.1% for all Inner Brisbane rentals.
  • One-bedroom, one-car apartments remain the most popular product based on the average number of rental applications per apartment.
  • The Inner South and CBD record slightly higher rents on average.
  • Furnished apartments receive a rental premium of 16.7% on average.