In the media: Brisbane’s unprecedented rent rises driving some to fast-track their property plans

In the media: Brisbane’s unprecedented rent rises driving some to fast-track their property plans

Brisbane is now the second most expensive city to rent in Australia, according to Domain’s latest rental report.


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From original: 


“The Sunshine State capital presents a challenging picture for those determined to enter the property market, but putting certain plans in place can alleviate some of the stress.


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Brisbane’s unprecedented rent rises in the year of 2023 have caused some first home buyers to fast-track their property plans, according to a local buyer’s agent.


As indicated by the Australian Bureau of Statistics (ABS), new loans to first home buyers in Queensland increased by 10.8 per cent over the course of November, second only to the ACT, where loan commitments to first-time buyers jumped 14.2 per cent.


Lauren Jones, a Brisbane based buyer’s agent and head of Lauren Jones Buyers Agency, explains that the challenging rental conditions are pushing people to buy their first home sooner than they had expected.


According to the SQM Research Weekly Rent Index, the median house rent in Brisbane as of 12 January 2024 is $704.08, while units sit at $563.52.


The data firm noted that median house rents have increased 9.3 per cent over the past 12 months and 14 per cent over three years, while units are up 14.7 per cent over the year and 14 per cent higher than three years ago.


The current data confirms Brisbane’s steady but unyielding rent rise is putting a financial strain on those who rent.


“I really feel for Brisbane renters, because the market is so competitive right now. Rental inspections often attract dozens of tenants and rents keep skyrocketing. The renters I speak with are often quite stressed, as they feel they have limited control over their living situation,” said Ms Jones.

 

The rental prices have easily put Brisbane as the second most expensive city to rent in Australia, according to Domain.


The drive for increased rental prices is due to the overflow of new residents to Brisbane, both overseas and interstate, said Ms Jones.


On top of that, Brisbane’s rental vacancy rate is critically low, as it sits at 0.9 per cent. It stands to reason then that renters with ambitions to buy are looking to move their plans forward.

 

That’s not to suggest it’s an easier task, however, with those looking to buy faced with a lack of supply and rapidly rising home prices.


SQM Research data highlights that the amount of property listings in December 2023 significantly reduced by 21.6 per cent lower than the same period in the previous year.

Ms Jones noted that unfortunately for renters looking to buy, “the odds are stacked against them”.


But for buyers who are looking to move ahead with their purchasing plans now, Ms Jones has one key tip: allow for a longer time frame to go through the buying process. This might mean working with a property manager on an existing rental to go month-to-month while finding the right home to buy. It also means getting your finances in order to be able to enter the search period with confidence.


“It’s important to get pre-approval so you can move fast and make a serious offer when you find a property you like,” Ms Jones said.


Taking heed of expert advice will also help buyers feel assured they’re making the right move.


“When you feel you are about to buy something compromised, reach out to an expert,” she recommended.


“The property market is challenging right now, but it’s not impossible. Don’t rush in as it can be a bad financial mistake.””