Brisbane rents in decline
Brisbane renters are benefiting from real falls in rents according to a new analysis of CoreLogic rental data by the Property Council of Australia.
“In the last quarter we have seen real rents in Brisbane actually fall for the first time in 20 years of data collection”, said Chris Mountford, Queensland Executive Director of the Property Council of Australia.
“Not only are rents falling, but Brisbane is back below the national average after nearly a year of growth that exceeded the rest of the country.”
After reaching a growth rate of 1.9% in May last year, real rents grew at a decreasing pace until November. Since the start of summer, Brisbane rents have been declining in real terms.
“February saw Brisbane rents decline in real terms by 0.8%,” Mr Mountford said.
“This is good news for Brisbane renters and shows that the current property investment taxation arrangements are delivering for them."
“There are a number of dynamics driving this decline – low interest rates, additional supply and the economic contraction in Queensland – but negative gearing policies are also a clear factor.
“These numbers highlight once again the economic risks of increasing taxes on property investment by changing negative gearing arrangements."
“It is beholden on those proposing changes to demonstrate what the impact of these would have on real rents, which are now at record lows.
“While the national average is declining (-0.1 per cent) we have seeing real growth in rents in Melbourne (2.0 per cent), Sydney (1.3 per cent) and Canberra (1.5 per cent).
“Hobart (-0.1 per cent), Adelaide (-0.5 per cent) and Brisbane (-0.8 per cent) are seeing modest declines while the end of the mining boom is seeing rents plunge in Perth (-8.5 per cent) and Darwin (-13.4 per cent). Both of these markets have witnessed significant increases in recent years and this is now correcting.”