CoreLogic’s latest Quarterly Rental Review indicates that national rental growth has significantly slowed, with rents increasing by just 4.8% in 2024 com-pared to the staggering 8.1% rise in 2023. With affordability concerns and supply changes influencing the market, is Brisbane finally seeing relief from the rapid rental surge? Let’s take a closer look at the trends shaping our city’s rental landscape.
The December quarter saw national rent values rise by just 0.4%, marking the smallest Q4 change since 2018. In Brisbane, rental growth is slowing, but affordability remains a pressing issue. Since the onset of COVID-19, rents have surged by 36.1% nationally, adding an extra $171 per week to the median rental price. As a result, Brisbane renters are now dedicating a larger portion of their income to rent than ever before.
To cope with these increased costs, many renters are opting to stay in multi-person house-holds longer or forming larger share homes, reversing the trend of smaller household sizes seen in the early COVID period. Houses in Brisbane have recorded higher rental growth (5.0%) compared to units (4.2%), reflecting the increased demand for shared living arrangements.
While affordability pressures are slowing rental price increases, changes in supply and demand are also playing a key role. The easing of net overseas migration has contributed to a moderation in rental demand, with migration levels expected to return to prepandemic aver-ages by 2026-27. At the same time, investor activity has picked up, with new investor lending rising by 26.3% in the year to September 2024. This increased investor participation suggests a gradual rise in rental stock, which could help stabilise prices further.
Brisbane’s vacancy rate has slightly improved, rising from a low of 1.4% in late 2023 to 1.9% by the end of 2024. While still tight, this suggests that availability is improving, offering more options for renters and easing competition.
Compared to other Australian capitals, Brisbane’s rental growth remains moderate. While Sydney and Melbourne have seen significant slowdowns (with annual rental growth easing to 3.0% and 4.1%, respectively), Perth has overtaken Canberra as the country’s second most ex-pensive rental market at $695 per week. Brisbane, by contrast, remains more affordable but is still experiencing strong demand, particularly for houses.
Rental yields in Brisbane have seen a slight dip due to the city’s strong property value growth (11.2% in 2024). Currently, Brisbane’s gross rental yield sits at 3.63%, slightly below Melbourne’s 3.71% and Adelaide’s 3.66%. Despite this, investor confidence remains strong, with Brisbane continuing to be a prime market for rental property investment.
While Brisbane’s rental market has slowed from its peak, affordability challenges remain. For renters, increased vacancy rates and a gradual rise in supply may provide some relief, but the market is still competitive. Investors, on the other hand, are seeing a shift in yields as property values continue to rise.
Navigating Brisbane’s rental market requires expert insight and strategy. Whether you’re a renter seeking the best options or an investor looking to maximise returns, our expert property management team is here to help. Contact us today to explore how we can support your property goals in 2024 and beyond.