15 Jan Investor paradise: Brisbane a landlords’ market as rents rise
BRISBANE is fast becoming a landlords’ market as vacancy rates tighten and rents continue to climb, putting investors in the box seat in 2020.
New data released by SQM Research reveals asking rents for houses increased 0.9 per cent in December to $473 a week — that’s 3.4 per cent higher than they were a year ago.
The rental vacancy increased slightly last month, but is still tight at 2.9 per cent, and lower than the 3.2 per cent recorded the same time last year.
Nationally, the residential rental vacancy rate increased marginally in December to 2.5 per cent.
SQM Research managing director Louis Christopher said there was a small rise in vacancy rates across all cities in December due to seasonality, but rents continued to rise.
“The increasing rents in most capital cities could see a move towards a landlords’ market in the coming months,” Mr Christopher said.
Property Club president Kevin Young said owners of investment properties in Brisbane would be “crazy to sell” this year.
The independent property group has identified four Queensland locations where property investors were set to benefit.
These include areas that are already under recovery including Brisbane and the Gold Coast as well as areas that are at the bottom of their property cycle such as Townsville and Ipswich.
“Property owners and, in particular, investors who can hold onto their properties during 2020 can expect to benefit from rising values moving forward,” Mr Young said.
But Propertyology head of research Simon Pressley said that while the cost of housing was relatively affordable in Brisbane, the city’s property market had experienced little growth since 2007 and buyer activity continued to be soft.
Mr Pressley said 2020 would be dominated by commentary around the October state election.
He said all investors should spend time setting financial goals for the year ahead, including the locations likely to produce the best results over the long-term.
“There’s never been a situation in our lifetime that borrower interest rates were so much lower
than rental yields like we have right now, and it seems increasingly likely that the RBA might cut again in February-March,” Mr Pressley said.
“This means that, even with a very small deposit, the annual cost to hold an investment property is near zero, so whether you’re using cash or equity in existing property, do something proactive for your future and get in the game this year.”