Rental Prices Tighten – Property Values Steady

Much speculation has been expressed over the last couple of weeks regarding the current overarching dynamic of the Brisbane property market. Namely the weakening of the rental market and the steadying of property values in this property cycle for Brisbane.

The rental market in Brisbane has been quite a problem for a number of investors trying to rent out their properties to tenants who just aren’t there or who expect lower rents.

Jensen Properties Co-Principal Karen Jensen believes the reason for the rent market slowing down right now is due to “a lot more properties becoming available and the economy tightening up.”

She went on to say that historically to this point rental prices had been pushed up and up toward the ceiling for this time and are not in-line with current affordability for tenants. “The rental market mirrors what people can afford.

The rental market is a “flexible entity” and is consistently up and down depending on demand and how available money is for people.

With Brisbane’s projected high population growth and influence coming from the multitude of new units to hit the market, these dynamics are certain to remain in flux over the next few years.

There is better news for property values in Brisbane however, with the Herald Sun reporting yesterday that Brisbane’s property values have jumped 18.5 per cent during the current property cycle which has been running since 2012.

Compared to Sydney and Melbourne, Brisbane’s property values are rising on par. Being the third most energetic city for property value growth is pretty good for little old Brisbane.

Gavin Curtis, also Co-Principal at Jensen Property believes that one of the major reasons for this is that “Sydney and Melbourne are too dear and property investors are looking for the value that they are finding here in Brisbane.