Sunday, July 6, 2008

Rents to Rise?

"... Meanwhile, Brisbane rents are predicted to increase by $45 per week in the next 18 months. This is due to a shortage of rental properties, the rise in interest rates and higher than expected rates increases.

Dan Molloy, managing director of the Real Estate Institute of Queensland, said that tenants in high-end units will pay the highest price following the rates increases handed down in the recently announced Brisbane City Council budget. “With vacancy rates at historical lows and tenant demand remaining high, further upward pressure on rentals is almost inevitable” he said.

The undersupply of new housing and rental accommodation is unlikely to be relieved in the near future and it is expected to be three to five years at least, if not longer before there is any substantial change to supply."

From ARPP June Newsletter.

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