Atlas Market Insights

Brisbane’s rental market is experiencing an extraordinary level of demand from tenants. Supply of rental properties is incredibly low, and these two factors have combined to create one of the tightest rental markets in Brisbane in 10 years. Atlas discussed these new trends and the impact for buyers and sellers with LJ Hooker’s Queensland Head of Property Management Stepfanie Regan. She provides insights into the best next step for investors, tenants and potential buyers. What rental market trends do you expect to see in Brisbane over 2021? The Brisbane rental market is experiencing a tightening of supply, as the vacancy rate sits at 1.8% and this is likely to continue throughout the course of 2021. The main contributing factor to this lack of rental supply is other states COVID-19 outbreaks and restrictions as well as border closures. We experienced huge migration in 2020, with interstate migration at 90% above the decade average and although the data is yet to be released for Q1 in 2021, we are likely to see similar trends. As long as this continues, we are likely to see an influx of new demand for rental properties. In recent memory, there has been no evidence of a property market so tight. We are experiencing huge demand for rental properties, with up to 87 tenant applications on a single property and this is likely to continue to increase through the year. How is investor participation trending? Investor participation is trending slightly lower than usual, as there is strong incentive for people to become owner occupiers at the moment. With incredibly low interest rates, the high likelihood of rapid capital gains and government concessions readily available now, it is more likely people will want to be owner occupiers over investors. In fact, Brisbane prices are expected to surge 20% by 2023, indicating that Brisbane will be the country’s best performing market over the next few years. Tenant demand for properties skyrockets as Brisbane rental market tightens INSIGHTS - INVESTMENT 20