Brisbane Rental Market Overview Q2 2011

According to the latest data released by the Rental Tenancies Authority, the most popular rental variation was the two bedroom unit which has secured 5,078 new bonds during the March 2011 quarter. This does however represent a slight decrease of 0.6% when compared to the previous March 2010 quarter. Three bedroom houses accounted for the second highest generation of new bonds at 3,386, a slight dip of just 0.1% from the corresponding period in 2010. In terms of townhouses, three bedroom tenancies were most in demand by a considerable margin recording 1,672 new bonds. This also equated to the strongest annual increase across all variations within Brisbane at 11.4%.

In terms of rental growth, one bedroom units have recorded the strongest annual increase of 3.6% or an additional $10 per week, to achieve $280 weekly rent. This was followed by four bedroom houses which registered a 3.2% or $15 per week increase over the year to record $465 weekly rent. Four bedroom houses also recorded the highest weekly rent of all variations, a total of $5 a week higher than three bedroom units. This small price differential between four bedroom houses and three bedroom units is justified given than most three bedroom rentals are either located within the CBD or inner city market, while larger houses predominate the middle and outer suburbs.

When assessing the top performing rental markets in Brisbane, it was established that one bedroom flats have dominated the strongest annual growth in rents across Brisbane. Although, performing exceedingly well across the board one bedroom flats within the 4122 post code recorded the strongest annual growth of 33% in weekly rents. This was followed by the 4011 and 4005 post codes which have recorded an annual increase of 21% each. Three bedroom flats in Coorparoo have also recorded notable performances with a 21% increase over the year.

The rental market which achieved the strongest growth in new bonds during the March 2011 quarter was one bedroom unit tenancies within the 4170 post code, which recorded a 173% increase. Four bedroom houses in Brisbanes 4077 post code have also recorded significant growth of 147% over the most recent 12 months, pushing median weekly rent up to $390 per week.

The premier weekly rents within Brisbane throughout the March 2010 quarter was achieved by four bedroom houses in Brisbanes premium inner city suburbs. Four Bedroom houses located within the 4005 and 4171 post codes each attracted a median weekly rent of $750 per week. Three bedroom units in Brisbanes CBD and fringe markets have recorded the second highest weekly rents across Brisbane at $720 per week. These premises close to the city are capable of attracting such high weekly rents because of the conveniences associated with their location and grade of the dwellings available for rent.