Brisbane - fastest rental growth in the country
Over the past 12 months , Brisbane has had some of the strongest population growth in the country and this has most clearly shown up in rental growth . Right now , Brisbane doesn ’ t have enough homes for those that want to live there . This is making it tough for renters but does make it a good place to invest . While red hot house price growth is unlikely to start up again in the near future , yields are increasing as rents rise .
Since the start of the pandemic , rents have risen almost as much as house prices . Brisbane ’ s median house price increased by 39 per cent between March 2020 and September 2022 . In comparison , rents increased by 34 per cent . While population growth and wealth impacts tell part of the story , flooding was also a factor pulling properties out of the rental market .
With rents rising so quickly , Brisbane needs more property investors . It ’ s therefore a relief that the state government pulled back on proposed changes to land tax which would ’ ve discouraged interstate investors . While buyer affordability gets the headlines , rental affordability is far more problematic and will worsen if investors lose confidence in the Brisbane housing market .
The suburbs that have seen the strongest rental growth are a mix of inner and outer suburban areas , reflecting two trends that have also been apparent in buyer markets - a search for space and a search for luxury . Topping the list for rental growth has been houses in Samford Valley , with Point Lookout units coming in second . Rental declines have been seen in units in Chermside West and houses in Newstead , although the declines have been relatively minor .
The outlook for the Brisbane market remains strong . House prices have come back a little bit but aren ’ t as sensitive as southern states due to lower debt levels . Meanwhile rental growth will continue . Interstate migration may start to slow but international migration is starting up again . Housing supply is being constrained by record high construction costs . Ideally we won ’ t see any additional taxes on investors or flooding to further challenge the situation .
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