Rental Ricochet,
Ron Loney- Joint Chairman
New four bedroom homes today are commanding substantial rental premiums over median rentals for the same type of homes - in simple terms, renters are declaring a preference for new homes , rather than established homes and are willing to pay more for them.
Owners of new four bedroom homes who have put them on the market for rent, have enjoyed higher rental incomes while simultaneously having to pay less interest on any money owed on the property.
In my 34 years in property I have never seen vacancy rates like we have today. With rents rising so rapidly, yields are at their highest levels for investors.
Unlike the Americans, we have not over built, we in fact have an undersupply of housing.
Ausbuild's assessment of achievable weekly rents shows that the rental range for new four bedroom homes at Wakerley which was between $430 and $450 a year ago, now is between $530 and $550 a week reflecting a jump of around 22 percent.
At Springfield Lakes where a year ago, the likely rental prices were between $320 and $380 a week, the achievable rental prices today are between $420 and $450 a week representing a jump between 18.4 and 31.2 percent.
Our research shows other localities across Brisbane including Victoria Point, North Lakes and Ormeau are following a similar rental growth pattern
At Springfield Lakes, rentals data shows new four bedroom homes in 2008 commanding a premium of between 27.2 percent and 30.4 percent over median rents for four bedroom homes during the same period.
The median rent range for four bedroom homes in Springfield Lakes during 2008 was $330 to $345; but new four bedroom homes were commanding between $420 to $450.
Similarly at Wakerley the median rent range for four bedroom homes was $450 to $480 but new homes are attracting $530 to $550 - a premium of between 14.5 and 17.7 percent.
