Rents are on the rise in some of Brisbane’s blue-chip suburbs

first_imgAN undersupply of major apartment developments in Brisbane’s blue-chip suburbs has had a positive impact for investors with rents rising in the past 12 months.Areas including Ascot, Nudgee and Fairfield have topped the list with the highest rent increase for houses.CoreLogic data revealed houses at Ascot, which have a median rent of $797.50, topped the list for the greatest rent increase (13.9 per cent) in the 12 months to December 2016. FREE: Get the latest real estate news direct to your inbox here This was followed by Nudgee, which had a $530 median rent, and recorded a 12.8 per cent increase.While the change in median rents for houses in Ascot was almost double that of South Brisbane (7.6 per cent), CoreLogic research analyst Cameron Kusher Kusher said rents were slightly lower across Greater Brisbane over the year.“Ascot is an area seeing less development and has larger long-established properties which is probably contributing to its superior performance,” Mr Kusher said.Hendra and Corinda topped the list for units with increases of 9.6 per cent and 8.5 per cent respectively. The median rent for Hendra was $572.50, and Corinda $385.Mr Kusher said properties in highly sought after areas were in Brisbane’s inner city and riverfront locations.“The desirability drives not just demand for owner occupied purchases but also for rentals,” he said. Madeleine Walsh is renting a unit in South Brisbane.HR consultant Madeleine Walsh, 28, rents a two-bedroom, two-bathroom apartment at South Brisbane and said she struggled to find an unfurnished apartment in Fish Lane.More from newsMould, age, not enough to stop 17 bidders fighting for this homeless than 1 hour agoBuyers ‘crazy’ not to take govt freebies, says 28-yr-old investor6 hours ago“There is such a big market for furnished corporate rentals so we had to wait a bit longer than we would have hoped,” Ms Walsh said.Data shows in December 2016, the median rental price in South Brisbane was $490 compared to 2015, which was $10 more.Ms Walsh pays $550 per week in rent and said she assumed areas with less new builds were in higher demand.And while Brisbane’s over supply of units has “certainly dampened” rentals, Mr Kusher said it had not yet had a major impact.“The last Census showed that units were more than twice as likely as houses to be rented so ultimately a relatively high proportion of new units end up available for rent,” he said.“With more units still under construction it is reasonable to believe that this will further dampen rents over the coming year.”Ray White New Farm rentals principal Haesley Cush said he had been pleasantly surprised with the response from tenants so far this year. “We saw the seasonal spike in January and there has continued to be a follow on through February and March,” Mr Cush said.He said 2016 saw heavy price connections, especially in the inner city suburbs such as South Brisbane and Milton.“It’s great to see a bounce back. This price increase shows tenants value the inner city amenities and the new complexes that have been completed.”last_img

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