Rental Property Demand Going Strong
by Stephanie Cox | New Client and Executive Leasing Manager
24 Wolseley Street, Paddington was rented after the first viewing for twice the median rental price in Paddington, Queensland.
Summer may be slipping away but the Brisbane rental market is hotting up!
With enquiries up to double the normal levels and more properties being leased than usual.
While January is usually the busiest month of the year for rentals, with people moving into a new home at the start of the new year, February was even busier this year, said Stephanie Cox, SPACE Property New Client and Executive Leasing Manager.
“The rental market really picked up in November last year and continued to get busier heading into 2020,” said Ms Cox.
At a Glance:
- February has been the busiest month of the year so far for the Brisbane rental market with SPACE Property fielding just under 1900 tenant enquiries
- In just one week over last month 591 enquiries were received, double the normal level
- Properties are being rented at around half the normal time, with around 50% of tenants paying above the asking price
- Paddington is the inner city hotspot at the moment, with one property recently rented in just one week – at the first open home – for $1,250/per week
“In November we saw a big rise in renters looking for family homes in school catchments or people moving from interstate, which is likely due to population growth in Brisbane,
especially with people moving from the southern capitals of Melbourne and Sydney.
“February, however, has been my busiest month with tenant demand coming from a range of demographics, including families, couples, sharers and downsizers.
“Over the month of February we fielded 1889 tenant enquiries.
Ms Cox said in just one week of February they had double the tenant enquiries than normal, with 591 enquiries.
“That’s huge, especially if we compare it to a week in July last year, for instance, when we had 263 enquiries,” said Ms Cox.
“I expect the rental market to remain steady through March following the huge demand we have witnessed.”
Ms Cox said properties were being rented faster and for higher rental rates due to the high tenant demand.
“Listed properties are usually rented in one week, but at the moment properties are being leased on the first open and achieving rents above the asking price,” said Ms Cox.
“I’m originally from Melbourne and worked in an extremely competitive market there, and February’s rental market for Brisbane felt the same as Melbourne’s high-demand market.
“It is only taking 11 days on average for properties to be rented by our team, which is very quick.”
According to REA figures, the average for rental listings to be leased last quarter was 21 days.
The current level of competition in the rental market is seeing around 50 per cent of tenants pay above the asking price to secure a property they really love, according to Ms Cox.
“Paddington in Brisbane’s inner city is the rental hotspot at the moment, with demand from renters much higher than other suburbs,” said Ms Cox.
“In terms of property type, many renters are looking for renovated Queenslanders.
“Air conditioning and pools were important requirements through the summer months.”
As one example of the demand in Paddington, a four-bedroom, two-bathroom house with a pool at 24 Wolseley Street in Paddington was rented in just one week – at the first open home – for $1,250 per week, double the median rental rate for houses in the suburb.
