16 Oct 2018

How negotiating rent could save Brisbane tenants nearly $2000 a year, but get in quick!

BRISBANE tenants could be shouting themselves an extra smashed avocado breakfast each week, with new research showing rents are falling across the city.

It is now on average $22 a week cheaper to lease an apartment in the Queensland capital, with unit rents falling or stagnating in almost three quarters (69 per cent) of suburbs in the year to July 2018.

The analysis of CoreLogic data by finder.com.au found it is even cheaper to lease a house in Brisbane, with the average rent for a three-bedder dropping $37 a week — that’s a saving of $1924 a year.

More than half (53 per cent) of all suburbs recorded a fall or no movement in house rents in the 12 month period.

The findings come despite rental vacancy rates tightening in Brisbane, as demand from interstate migrants starts to eat into the city’s housing supply.

Finder.com.au money expert Bessie Hassan said Brisbane’s softening rental prices could be the catalyst for renters becoming homeowners.

“Rent is an expensive ongoing cost, so any saving is a cause for celebration,” Ms Hassan said.

“Pocketing nearly $2000 a year will mean renters looking to buy will be able to save for a house deposit quicker.”

Apartment rents in Redland Bay have dropped the most — falling 13.7 per cent in the year to July.

“The rent for an apartment in the Redland Bay has dipped from $475 to around $410 per week, which works out to be a saving of $65 a week or around $3380 a year,” she said.

“These savings are sizeable and could shave years off the time it takes renters to save to buy a property.”

The biggest drop in house rents was in the affluent suburb of Ascot, where you can now get a three-bedroom house for an average of $715 a week, compared with $850 a year ago.

Ms Hassan said there was more opportunity for renters to negotiate how much rent they paid.

“An increasing number of rental properties are being advertised with a price range rather than a set price which means you have more bargaining power,” she said.

“If you’re looking for a new rental property or re-signing a lease, it pays to check how much your neighbours are paying.

“If you feel like you’re paying too much rent, don’t be shy to ask for a better deal, especially if you’re renting in one of the suburbs where there’s been a drop in rent.”

But make the most of the cooling rental environment while you can.

Brisbane’s rental vacancy rate declined for a sixth straight month in August to 2.8 per cent — down from 3.4 per cent a year ago, according to SQM Research.

Around 9500 residential rentals are sitting empty in the city, compared with more than 19,000 in Sydney.

SQM Research managing director Louis Christopher said that meant asking rents in Brisbane would also likely start to rise as the vacancy rate continued to tighten.

“When we do get close to that 2 per cent mark, that will put upward pressure on rents,” Mr Christopher said.

Independent property analyst Michael Matusik agreed inner Brisbane’s available apartment rental supply was contracting sharply, which would in turn put pressure on weekly rents.

“Many of Queensland’s recent interstate migrants from Sydney are young couples trying to make a new start in Brisbane,” Mr Matusik said.

“They are mostly renting new inner city apartments.”



Suburb 2017 rent 2018 rent %age drop Weekly price drop

Ascot $850 $715 -15.9% $135

Fairfield $515 $460 -10.7% $55

West End $600 $550 -8.3% $50

Cannon Hill $490 $450 -8.2% $40

Shailer Park $478 $440 -7.9% $38

Kangaroo Point $540 $500 -7.4% $40

Nudgee $540 $500 -7.4% $40

Hendra $645 $600 -7.0% $45

Bulimba $698 $650 -6.8% $48

Highgate Hill $530 $500 -5.7% $30

(Source: Finder.com.au, CoreLogic, based on data for the 12 months to July 2018)



Suburb 2017 rent 2018 rent %age drop Weekly price drop

Redland Bay $475 $410 -13.7% $65

Red Hill $395 $365 -7.6% $30

Highgate Hill $430 $400 -7.0% $30

Kangaroo Point $480 $450 -6.3% $30

Stafford $370 $350 -5.4% $20

Milton $475 $450 -5.3% $25

Alderley $385 $365 -5.2% $20

Bowen Hills $443 $420 -5.1% $23

Underwood $348 $330 -5.0% $18

Fortitude Valley $440 $420 -4.5% $20

(Source: Finder.com.au, CoreLogic, based on data for the 12 months to July 2018)

Originally published as How you can save $37/wk in rent


SOURCE ; https://www.news.com.au/finance/real-estate/brisbane-qld/how-negotiating-rent-could-save-brisbane-tenants-nearly-2000-a-year-but-get-in-quick/news-story/423a63398a59e9dafcdfb011339b0e63


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