Tenant demand increases as Brisbane’s apartment supply tightens

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.