Rental Vacancies - What's Going On?
Why is rental demand lower than before? That’s the question a lot of landlords are asking at the moment, and it’s true that the numbers are lower. That’s why today we’re looking at what’s happening with the market, and what you can expect in the future.
Too Many Cooks
Though it’s not as bad as places like Sydney and Melbourne, Brisbane is experiencing a glut of new apartments in the city. With these cheap and new properties on offer, fewer people are looking to rent when they can buy.
"Brisbane is suffering from an oversupply of new apartments, mostly in the CBD, city fringe and inner suburbs,” says Michael Yardney, CEO of Metropole Property Strategists.
“Even though forecast completions will decrease over the next few years, the current oversupply will limit capital… and rental growth for a number of years.”
Across the greater Brisbane area, 4.4% of all rental properties are empty, leaving us with one of the highest vacancy rates in the country, second only to Perth. As REIQ chief executive Antonia Mercorella says, this has to lead to increased market competition.
“Landlords know they need to be competitive, because renters have a lot more choice, and they’re negotiating better deals. If the average rent they were getting was $520 a week and they get an offer of $490, some just can’t accept it,” she says.
What Can You Do?
In a crowded market, you have to stand out from the pack. Consider paying for a marketing push, or having your property renovated during a vacant period. Also, follow the advice of the REIQ's Antonia Mercorella and don’t be set on a single, fixed price. Instead, be adaptable and know that you might not get exactly what you want, but you can still get a good deal.
Of course, the dedicated staff in our Property Management Department are always happy to help, so give us a call today to see what we can do for you.