- Vacancy rates are longer. My rough rule of thumb is that for every week a property is vacant, that is approximately $10 a week off the rent for a one year period.
- Rental periods (e.g. 1 year, 6 months) are tending to be shorter, with tenants turning over more often
- Actual rents are flat, or decreasing slightly.
- New apartment buildings that have many empty apartments are offering rent free periods, which in effect is a rent reduction. For example, if the weekly rent is $500 a week, but the landlord offers four weeks for free, then the effective rent for the year is $461 a week. But the RP Data report will show the rent as $500 a week.
Friday, October 17, 2014
RP Data has recently released its quarterly rental review. It shows that Brisbane apartment rents are flat. My sources tell me that rents are declining.