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Tenants on top as rents stay steady

21 January 2015 Staff Reporter

The Brisbane rental market has been kind to tenants this summer, with prices for houses falling flat over the past quarter.

The Brisbane rental market has been kind to tenants this summer, with prices for houses falling flat over the past quarter.

Domain Group's Rental Report for the December quarter showed the Brisbane median rental price for houses remained at $400 per week over the past three months, as well as the past year. 

The median rental price for inner-city Brisbane homes remained at $450 per week over the past quarter.

The report also showed no movement in Ipswich ($330 per week), Logan ($360 per week), and Moreton Bay ($370 per week).

The only area to experience a slight lift in the median rental price for a house was in the Redland City Council area, with an increase of 1.2 per cent over the past quarter, to $435 per week.

Domain Group senior economist Dr Andrew Wilson said Brisbane rents had been flat for a while due to a number of factors.

He said falling interest rates were encouraging first homebuyers into the market, therefore taking more tenants out.

"That may have taken a little bit of pressure off, in terms of a rise in demand [for rentals]," Dr Wilson said.

Another factor was the local economy and fears of unemployment, according to Dr Wilson.

Queensland currently has the nation's highest unemployment rate in mainland Australia, at 6.9 per cent.

"Brisbane is already expensive for houses and with an economy underperforming at the moment, this might be an issue, in terms of being able to push the rent higher," he said.

The Brisbane median rental price for a unit decreased by 1.3 per cent over the past quarter, to $370 per week.

On the other hand, the median rental price for a unit increased by a fraction in outer areas. In Ipswich it went up 1.9 per cent, to $275 per week, Logan had a gain of 1.8 per cent to $290 per week, and in Redland, the unit price shifted up 1.3 per cent to $395 per week.

The median rental price for a unit remained flat in Moreton Bay at $300 per week.

Dr Wilson said the flat rental prices for units were likely due to increased supply in the inner-city area.

"Unit rents have been falling," he said.

 

"So in an environment where the global economy is doing it tough, with higher unemployment, it's good news on the ground for tenants."

Tenants on top as rents stay steady
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