A rental market in Brisbane that has been dominated by luxury properties has been flooded with home buyers this year with more than 600,000 homes on offer in the CBD alone.
Key points:Brisbane has the most properties on offer for rent in the city, but prices are increasing fast in the area of the CBDAs of January, there were 6,715 properties on the market for rent, the second highest number of properties on sale after the Sunshine Coast.
There are currently more than 6,000 properties available in Brisbane, according to the Australian Real Estate Association.
It is estimated that there are more than 1,000 luxury properties in Brisbane alone and the city has more than 500 properties available for rent.
But the median rental price in Brisbane is now $1,400 per month and a major increase in prices has been seen since the first quarter of this year.
“The housing market has been very competitive, particularly in the last few months of the year, particularly for buyers,” said Andrew Smith, the chief executive of the Australian Institute of Real Estate.
“But the rental market has really taken off in recent months, especially in the Brisbane CBD and south-east of the city.”
He said the average rent in Brisbane was $2,300, while in the Sunshine and Sunshine Coast regions it was $1-2,000.
The median property price in the state was $3,000 and in Brisbane the average was $4,500.
Smith said that there was also a significant rise in property prices in the past year in Brisbane and other parts of the state, with some areas having house prices that were 30 per cent or more higher than the median home price in that area.
“We have seen the market rise significantly in some areas in Brisbane,” he said.
“It is definitely the biggest growth in Brisbane in recent years.”
So in a sense it’s kind of a crossroads for the market right now.
“Mr Smith said the rise in prices was partly because of a rise in demand for housing.”
There’s been a lot of people who have come into the market and that’s made it more difficult for a lot people who are looking to live in Brisbane to find a home,” he added.”
People are looking for a more affordable place to live.
“In addition, the Queensland Government has announced a crackdown on rent rises in the capital region.
While a maximum rental of $1.9 million a year is set to apply, many landlords are charging rent rises as high as $3 million.”
In the Brisbane area, there are quite a few properties available to rent, particularly near the CBD, but a significant number of them have been sold and it’s very challenging to find people who want to rent these properties,” Mr Smith said.
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