House rents grew to a record median of $410 a week over the March quarter – the first rise in 10 consecutive quarters.
That is $10 more than what the average tenant paid in the previous quarter
And in a double hit for tenants, the median price to rent a unit also increased to a record $380 a week; a $5 growth since the last quarter.
Over the past year the cost of renting a house grew by 2.5 per cent, and unit rents grew by 2.7 per cent.
The report showed that to
rent a house in Brisbane is now more expensive than in Melbourne, but still a long way off Sydney’s median of $530.
The figures also showed that the building boom had yet to have an impact on rental prices.
But Domain Group chief economist Andrew Wilson said the building boom had yet to really kick in.
“It’s interesting that on top of the talk of inner city apartment oversupply, we are seeing unit rent increase. But, really, Brisbane is yet to see the bulk of the building boom and when it hits, it will likely push supply ahead of demand,” Dr Wilson said.
Vacancy rates remained reasonably balanced, with a slight tightening of 0.1 per cent for units in the March quarter.
The most expensive suburb for houses was Ascot, with the median soaring to $718 a week.
The most expensive suburb for units was Milton, with a median of $478 a week.
Ray White Ascot head of property management Brooke Willis said high rent in the area was seeing more people negotiate prices.
“It depends on the price how much people are negotiating, but at the expensive end we can see substantial negotiations, but on the lower-priced side a lot less,” Ms Willis said.
She said $700 a week would secure a mid-level house.
“You’d be looking at a three-bedroom, two-bathroom home,” she said. “Pretty much your middle-of-the-range house.”
“We are seeing more people buying than renting – about 60-40 in favour of buying.”
Ray White Paddington principal George Hadgelias said the growth in unit prices in Milton was due to newer apartments.
“Rental prices are consistent with that newer product on the market,” he said.
“People can get an older two-bedroom unit for $400, or a brand new one-bedroom for the same price; so there is that choice for tenants.”
Originally Published On: http://www.domain.com.au/