Beautiful one day, pricey the next | Kanebridge News
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Beautiful one day, pricey the next

Low vacancy rates and rising rents make life tough on tenants in the Sunshine State while investors see strong capital growth

Mon, Jul 10, 2023 10:44amGrey Clock 2 min

Renters in Queensland are experiencing the greatest rental pressure in the country, new data shows.

The Rental Pain Index released by content and research provider Suburbtrends shows the Sunshine State has seen the highest average rental increase in 12 months across the country at 16.33 percent.

“The significant increase in rental prices over the past year in Queensland is a clear contributor to the heightened rental pain felt by residents,” said founder of Suburbtrends, Kent Lardner. “Similar trends are observed in South Australia and Western Australia, where rental prices have risen by approximately 15.95 percent and 15.37 percent, respectively.”

The findings are the result of analysis of the top 25 rental results in each state comparing advertised rentals, vacancy rates and average rent increases over a 12 month period. It also examines average rents as a percentage of income.

The report comes on the back of data released by Ray White Real Estate which reveals that unit prices in Brisbane are growing at a faster pace than houses.

Ray White chief economist Nerida Conisbee said unit price growth has kept pace with that of houses, with apartment prices now back to their 2022 peak. She attributed the recent downturn in apartment prices to the lockdown lifestyle of the pandemic.

“Apartment living wasn’t much fun during lockdowns. Living in smaller spaces with restricted movement was difficult and a lot of the best things about urban living were not available,” Ms Conisbee said. 

“Now that things are pretty much back to normal, apartment living is again attractive. Most of us are going back to the office more frequently and all the best things about living in higher density suburbs are back. 

“We have moved quickly from a situation where there were too many apartments to not enough. Demand is exceeding supply, driving up prices and rents.”


Ms Conisbee noted that demand for apartments would continue to outstrip supply as building approvals were at their lowest point in more than a decade while construction costs were at record highs.

She said the future of the Australian residential market was apartment living, which is not reflected in current housing stock around the country.

“Australia has extremely low density relative to other major cities,” Ms Conisbee said. “Sydney is our highest density city but half of all homes are still detached houses. In Hobart, just 15 percent of homes are attached or apartments.” 


Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’

Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual

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The home building market is on the rebound as building approvals rise, new data reveals.

Information from the Australian Bureau of Statistics shows that the total number of dwellings approved in August was up 7 percent seasonally adjusted, with apartments leading the way.

Private sector house approvals gained 5.8 percent in August while private sector residences excluding houses were up 9.4 percent. This follows on from a decrease of 14.6 percent in July and indicates a solid recovery in the Australian construction sector as the end of the year approaches.  

Approvals for total dwellings were strongest in the two largest states, with Victoria recording a rise of 22.2 percent and NSW 12.5 percent. Western Australia also saw a significant rise of 12.3 percent.

In Queensland, the results were less positive for the sector, with total dwelling approvals falling by -26.9 percent. Tasmania also experienced a drop in approvals in August, down -10.1 percent and South Australia -6.9 percent.


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