 What happens when Brisbane house rent continue to swell?
Brisbane house rent is expected to skyrocket by eight percent before this year ends. This is the effect of the continuously increasing interest rates and lessened vacancy rates, according to the report of the Australian Property Monitors .
The report predicts that the current $365 weekly house rent will increase by almost $40 while unit rent cost of $345 will increase by $25 by year end.
The river city registered the slowest rental growth in 8 years with house rents moving between $350 to $360.
"The factors that kept a lid on rents in most cities in 2009 are no longer apparent," APM economist Matthew Bell noticed.
Unemployment has weakened while job security and earnings improve. This development in the economy prompted the recent series of interest rates hike, which then triggered the surge in flat rents. This rent increase is expected to scare potential first-home buyers.
According to Bell, Brisbane suburbs known for low rental homes have suddenly received a rush of families wanting to diverge from the city.
Australia suffers from a low supply of new properties being built which further aggravates the current low vacancy rates, particularly in the major cities like Sydney and Melbourne.
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