Rent rollercoaster: $100 hikes in hotspots as broader market cools

PropTrack economist Eleanor Creagh says rents have cooled in some areas, but remain hot in others

Tenants in a swathe of suburbs across the state were paying more than $100 extra a week to rent a home than last year, with vacancy rates remaining stubbornly low, latest rent price data reveals.

PropTrack’s latest quarterly rental index shows price pressure easing across Brisbane, while some coastal markets recorded year-on-year increases of up to 27 per cent, topping out at an additional $305 for a house in ritzy Sunshine Beach on the Sunshine Coast.

Another dozen Queensland suburbs recorded annual rent increases of $100 a week or more, including the Gold Coast suburbs of Surfers Paradise (+$275), Burleigh Heads (+$200) and Burleigh Waters ($150).

Riverfront Bulimba was Brisbane’s strongest performer, with rent up 17 per cent or $175 to a median $1,200.

The rental market has ‘recalibrated’, Ms Creagh said

PropTrack economist Eleanor Creagh said the rental market had “recalibrated” as tenants were pushed to the brink of affordability.

“Vacancies still remain low by historical standards but rental price growth has eased significantly, although rents are elevated after years of record growth,” Ms Creagh said.

“We’re not seeing a retreat in rental price pressure but certainly an easing.

“It looks like momentum has cooled a little bit in Sydney and Brisbane.”

She said the unit market was leading for most capital city markets, “probably a sign that tenants are trading space for location and price, which seems a rational response when we know that household budgets are stretched and rents have increased significantly in recent years.”

Ms Mercorella said the rental market was severely undersupplied. Picture: Liam Kidston

The Real Estate Institute of Queensland (REIQ) CEO Antonia Mercorella said the state’s rental market remained “severely undersupplied”, despite stabilising prices in many areas.

“This rental squeeze, while not worsening, is continuing to make a strong case for more investors and more rental accommodation to meet demand,” Ms Mercorella said, referencing rental vacancy rates remaining around 1 per cent.

It comes as the Property Investment Professionals of Australia (PIPA) warned of mounting pressure as a record number of investors sell up, driven by rising costs, legislative uncertainty, and concerns over proposed federal tax reforms.

This apartment in Burleigh Heads’ Mondrian residences is up for rent at $5,500 a week

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PIPA’s annual survey found 35.5 per cent of investors had sold at least one property in Queensland — the highest rate of all the states, and an increase of 2 per cent from last year.

“We’re seeing a growing number of long-term investors walking away, and the implications for renters are severe,” PIPA chair Lachlan Vidler said.

“The private rental market is losing stock at a time when demand is surging, and policy uncertainty is only making things worse.”

Property Investment Professionals of Australia chair Lachlan Vidler. Picture: Supplied.

The national survey found only 42 per cent of sold properties remained in the rental pool, while 37 per cent were snapped up by owner-occupiers and 25 per cent by first-home buyers.

“The shift is structural, not temporary,” Mr Vidler said.

“Once a property leaves the rental market, it rarely returns.

“We’re watching the slow dismantling of Australia’s rental supply, and tenants are paying the price through rising rents and reduced availability.”

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