Brisbane rental market remains positive for tenants

The Brisbane rental market remains positive for tenants providing a reasonable choice of properties in most locations.

Latest Domain data reveals that the vacancy rate for houses tightened slightly over January from the 2.7 per cent recorded over December to 2.6 per cent. Vacancy rates however have eased significantly over the past year up from the 2.1 per cent recorded over January 2014.

With the exception of the resource capitals Perth and Darwin, Brisbane has the most tenant-friendly, capital city rental market for choice with most other capitals reporting tight conditions with chronic shortages of house rentals.

The rental market for units is also reporting vacancy rates positive for tenants.

The January result at 3.4 per cent, similar to houses, was lower than the 3.6 per cent recorded over the previous month. Brisbane’s unit vacancy rates however remain well ahead of the 3 per cent recorded over January last year.

Most capital cities have notably higher unit vacancy rates than houses reflecting the recent surge in new inner city apartments. Brisbane clearly has higher levels of units available for rent as a consequence of its recent unprecedented unit building boom. With the bulk of recent apartment development yet to come into the market, unit vacancy rates can be expected to continue to rise.

Redbank Plains, North Lakes and Caboolture are the suburbs with the highest house rental vacancies, with Brisbane City, New Farm and South Brisbane offering the highest unit vacancies in January.

The Brisbane rental market is set to remain relatively tenant-friendly with a rising choice of available properties for renters. Higher vacancy rates will act to moderate rental growth which is more good news for tenants and for first home buyers saving to enter the market.

Dr Andrew Wilson is Domain Group Chief Economist. Follow him on Twitter @DocAndrewWilson