Gulf · UAE Digital
House prices falling, rent prices up Renters in 801 Queensland suburbs have been hit with punishing price hikes of up to $170 a week over the past three months alone, as the state’s rent crisis runs on despite the nation’s housing downturn. An analysis of Realestate.com.au’s September quarter rent data reveals the sheer scale of rent pain, with 92 per cent of all house or unit markets notching up annual increases. Greater Brisbane’s median weekly rent pushed to $680, up $40 over the past year, while the rest of Queensland was close behind, jumping $35 to $625.
The quarterly suburb breakdown revealed more extreme shocks, led by inner-city Bulimba where house rents surged $170 to $1,270 since July. No relief in sight for Brisbane renters Realestate.com.au economic research manager Angus Moore said the disconnect between falling home prices and surging rents was driven by an “extremely tight” lack of supply, rather than landlords simply passing on interest rate hikes. “Mortgage rates directly flow through to borrowing capacity and therefore home prices, and so the four rate hikes we’ve seen are pushing down home prices,” Mr Moore said.
“There isn’t a strong link between rate hikes and higher rents.” With September vacancy rates at 1.1 per cent in Brisbane and 1.3 per cent in the regions, Mr Moore warned there was little relief in sight for tenants. “Rental market conditions...are likely to remain tight, so we’re going to continue seeing pressure on rents.” Realestate.com.au economist Angus Moore: ‘extremely tight’ House rents jumped $120 a week in Brookfield in Brisbane’s west last quarter, while increases of $100 a week were recorded for houses in Burleigh Heads and Jacobs Well on the Gold Coast, and units in Twin Waters on the Sunshine Coast. The longer-term picture was even bleaker.
Tenants in Park Ridge South on the city’s southern fringe faced the most severe annual blow, with house rents surging $285 a week year-on-year to $1,100. Airlie Beach in the state’s north jumped $225 a week over the year to $1,175, while inner-Brisbane’s Auchenflower recorded a $223 annual hike for houses. Quarterly rent prices increased were recorded in the capital city and regional Queensland Research from national housing campaign Everybody’s Home found four in ten households would be unable to absorb a rent increase of even $20 a week without sacrificing essentials like food and healthcare.
Everybody’s Home CEO Maiy Azize said tenants reported paying record amounts for properties that were often poorly maintained, freezing in winter or riddled with mould. “Renters are being given the worst deal in living memory,” Ms Azize said. “Not only do rents continue to spiral out of reach, the condition of many homes is shoddy and making renters sick.” Everybody’s Home CEO Maiy Azize: ‘Worst deal in living memory’ Across the regions this quarter, in Cairns, Mission Beach houses leapt $75 a week to $675, and $60 in Holloways Beach to $780.
In Townsville, West End houses spiked $35 to $585, and Townsville City $30 a week to $680. Real Estate Institute of Queensland’s (REIQ) put the statewide vacancy rate at a critical 1.0 per cent, leaving renters with little choice but to cop the hikes. Of 50 Queensland regions tracked, the Bay Islands was the only rental market in the state considered healthy (2.6-3.5 per cent vacancy).
Annual rent figures revealed more pain MORE NEWS Inside next top-tier project for Lamb House restorers Top banker reveals two radical ways to beat RBA rates squeeze Bombshell: Aus’ worst time in 100 years “To have just one healthy rental market in the state, and for that market to be a group of islands, speaks volumes about the shortage of rentals in Queensland,” REIQ CEO Antonia Mercorella said. “With every other region in the state considered tight, there is likely to be a vast mismatch between the number of renters seeking a property versus the number of lasting lease listings.” She said multigenerational family households and share homes were on the rise as stretched renters sought to reduce their costs. REIQ CEO Antonia Mercorella: Only one healthy rental market in the state Ms Azize said the rental crisis was no longer just a housing issue, but a social emergency dictating how Australians live.
“People are putting off retirement, study, new jobs, marriage and leaving relationships. “Families are financially supporting each other across generations and kids are going without school excursions and even healthcare,” she said.
Source: Real Estate
