Rental prices in Brisbane have jumped 15% in the past year, making it more expensive to live in the river city than in Melbourne. Property experts say it’s due to mum and dad investors selling up over fears they’re losing control of their own assets.
New data reveals that Brisbane has surpassed Melbourne in terms of rental prices, with costs jumping 15% over the past year. This surge makes it more expensive to rent in Brisbane than in its southern counterpart, Melbourne.
The unexpected rise in rental prices is reportedly due to an exodus of ‘mum and dad’ investors from the market, who are selling their properties amid fears they’re losing control of their assets. This reduction in rental stock has led to increased competition among tenants, driving prices up.
“This is a significant shift in the rental landscape,” said one property expert. “Brisbane has traditionally been seen as a more affordable option compared to cities like Sydney and Melbourne. However, these latest figures show that this is no longer the case.”
Investors have been a cornerstone of the rental market, providing homes for those unable or not ready to buy. However, increasing regulation, changes in tax policy, and other factors have made some small-scale landlords feel uncertain about their investments.
“Many mum and dad investors are feeling squeezed out,” the property expert continued. “They’re concerned about losing control over their properties and are choosing to sell instead. This has led to a decrease in available rental properties, which in turn has pushed prices up.”
With rental demand high and supply low, tenants are feeling the pinch. Those on lower incomes or with large families are finding it particularly hard to secure affordable housing.
The situation has sparked calls for policy changes to encourage more investment in rental properties and ensure there’s enough supply to meet demand.
In the meantime, prospective renters in Brisbane may need to brace for further price hikes. As the city continues to grow in popularity and attract new residents, the pressure on the rental market is unlikely to ease anytime soon.
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